• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to footer

Before Header

  • Customer Training
  • Customer Support
  • Blog

Search

  • English

    Supply Chain Management Software (SCM Software) by Logility

    • Solutions
      • Advanced Analytics
      • Integrated Business Planning
      • Demand Optimization
      • Inventory Optimization
      • Sourcing Management
      • Supply Optimization
      • Quality & Compliance
      • Retail Optimization
      • Product Life Cycle Management
      • Supply Chain Data Management
      • Cloud Services
    • Industries
      • Consumer Goods
      • Furniture / Durable Goods
      • Electronics
      • Food & Beverage
      • Life Sciences
      • Process / Chemical
      • Retail
      • Service / Aftermarket Parts
      • Apparel / Softgoods
      • Wholesale Distribution
    • Resource Center
    • Company
      • Investor Relations
      • Contact Us
      • Careers
      • Leadership Team
      • Office Locations
      • Our Brands
      • Partners
    • News and Events
      • In The News
      • Events and Conferences
      • Press Releases
      • Press Inquiries
    • Contact Us
    • Solutions
      • Advanced Analytics
      • Integrated Business Planning
      • Demand Optimization
      • Inventory Optimization
      • Sourcing Management
      • Supply Optimization
      • Quality & Compliance
      • Retail Optimization
      • Product Life Cycle Management
      • Supply Chain Data Management
      • Cloud Services
    • Industries
      • Consumer Goods
      • Furniture / Durable Goods
      • Electronics
      • Food & Beverage
      • Life Sciences
      • Process / Chemical
      • Retail
      • Service / Aftermarket Parts
      • Apparel / Softgoods
      • Wholesale Distribution
    • Resource Center
    • Company
      • Investor Relations
      • Contact Us
      • Careers
      • Leadership Team
      • Office Locations
      • Our Brands
      • Partners
    • News and Events
      • In The News
      • Events and Conferences
      • Press Releases
      • Press Inquiries
    • Contact Us
    • Blog
    • Customer Support
    • Customer Training
    consumer-electronics-supply-chain

    Attribute Based Planning for the Consumer Electronics Industry

    January 9, 2018 //  by Hank Canitz

    Attribute Based Planning for the Consumer Electronics Industry

    1. Home
    2. Blog
    3. Attribute Based Planning for the Consumer Electronics Industry

    Consumer ElectronicsThe sheer number of options available in consumer electronics products can be overwhelming as many in the United States likely experience every holiday and especially during the Thanksgiving holiday as they compared Black Friday and Cyber Monday deals. Televisions are a prime example as the technology has come a long way in the last 10 years and manufacturers jockey for differentiation. LED versus OLED; flat screens versus curved; edge lighting versus rear; 4K, Ultra High Definition, High Dynamic Range, 3D, the list goes on. All these options made me think about how difficult it must be to forecast demand for ever-changing consumer electronic product lines and the potential advantages of using attribute-based planning to manage the SKU-proliferation this industry faces.

    Attribute-based modeling uses demand profiles in place of direct historical sales data. Demand profiles are built from historical sell-in and sell-through data reflecting a variety of demand and seasonal attributes. A particular model’s forecast is patterned after the profile that best characterizes the product. As actual demand information is captured, the profile is validated or alternate profiles identified to dynamically adjust the product’s forecast.

    Attribute-based modeling consists of three unique steps:

    1. Create Demand Profiles: Creation of demand profiles is based on mathematical concepts known as Chi-squared analysis. The demand planner selects products to be included based on attributes such as color, type, region, etc. Multiple attributes can be applied simultaneously.
    2. Assign Demand Profiles: New products can now be assigned to Demand Profiles. It’s vital that planners be able to set criteria for how a new product’s attributes must match the attributes of a demand profile.
    3. Assess Accuracy of Demand Profile Based on Demand Signals: In a perfect world, demand profiles, once set, would never need adjusting—new products would sell just like other products with similar attributes. In the real world, POS and other demand signal feedback should be used to assess how well the current demand profile fits versus other demand profiles that have similar attributes. Relative-Error-Index (REI) calculations let planners see which demand profile has the most accurate fit based on current demand trends. The original demand profile may be swapped out for the profile that has the lowest REI attributes.

    Supply chain organizations routinely rank forecast accuracy as a major obstacle in meeting their goals. Accurate forecasts are the foundation for profitable business growth. Creating accurate forecasts requires comprehensive modeling capabilities plus the flexibility and ease-of-use to shift methods as life cycles progress and market conditions change.

    Additional Reading:

    • White Paper: Eight Methods That Improve Forecasting Accuracy
    • White Paper: Winning the Inventory Battle in Consumer Electronics

    Hank Canitz
    Hank Canitz

    Product Marketing Director Hank brings more than 25 years of experience building high performance supply chains. This experience includes evaluating, selecting, implementing, using and marketing supply chain technology. Hank’s graduate degree in SCM from Michigan State, numerous SCM certifications, diverse experience as a supply chain practitioner and experience in senior marketing roles with leading supply chain solution providers helps him to bring a unique perspective on supply chain best practices and supporting technology to the Voyager Blog.

    Recent Posts

    • Import Bans from China Grow in US and UK
    • How Do You Turn Supply Chain Data Into Actionable Information?
    • Lot Traceability in the Fashion Industry
    • How Can Manufacturers Manage Disruption and Improve Productivity?
    • 12 Steps to a Resilient Enterprise: Part 1 of 4

    Related White Papers

    • Five Ways to Build Advanced Supply Chain Planning and Optimization Capabilities in Process Chemical Industries
    • Supply Chain Planning Transformation – A Practitioner’s Roadmap
    • A Digital Transformation Guide for Supply Chain Disruptions

    Success with Logility

    • Williamson-Dickie Boosts Company Performance
    • Kelly-Moore Rolls Out a Transformed Supply Chain
    • Ashley Furniture Optimizes Inventory & Reduces Safety Stock
    Supply Chain Brief

    Category: Demand PlanningAsset Category: Demand Planning/Forecasting

    Previous Post: «sales-operations-planning-success Getting to S&OP Success
    Next Post: Making Cents Out of Demand Sensing forest-trees»

    Footer

    Solutions

    • Advanced Analytics
    • Integrated Business Planning
    • Demand Optimization
    • Inventory Optimization
    • Sourcing Management
    • Supply Optimization
    • Quality & Compliance
    • Retail Optimization
    • Product Life Cycle Management
    • Supply Chain Data Management
    • Cloud Services

    Industries

    • Consumer Goods
    • Furniture / Durable Goods
    • Electronics
    • Food & Beverage
    • Life Sciences
    • Process / Chemical
    • Retail
    • Service / Aftermarket Parts
    • Apparel / Softgoods
    • Wholesale Distribution

    Other

    • White Papers
    • Press Releases
    • Company
    • Careers
    • Contact Us
    • Investor Relations
    • Privacy Policy
    • Terms of Use
    • Cookie Policy
    • Forward Looking Statement

    Our Brands

    • Logility Solutions
    • Halo Business Intelligence
    • Demand Solutions
    • NGC Software

    Social Media

    © 2021 American Software, Inc. All rights reserved.