Making business decisions based on what is actually in demand is an efficient way to improve the profitability of your business. This is called demand management and is a common term in e-trade and logistics. Below we explain everything you need to know about demand management.
What is demand management?
Demand management is a method for making business decisions based on a prognosis of demand. This method is used in different ways in different industries, depending on what you want to achieve. A simple example of demand management is when inflation goes up and the national bank raises the repo rate to make it more expensive to lend money. In this case, the action is meant to soften demand to stabilize the economy. In e-commerce, it works the other way around – companies use data about what products have received the most clicks to steer production and logistics based on said data.
Also read: CPFR – Collaboration planning, calculation and refill and Just in time.
How can e-traders use demand management to increase profits?
As an online trader you have, through your own website, access to a wealth of information about what is actually in demand from your customers. The data reveals what products are likely to be sold fast and which you might need to order more of. It also provides guidelines regarding how future campaigns should be built. By basing business decisions on actual data you will also be able to avoid spending resources on campaigns and products that aren’t a fit for your customers.
Improve company competitiveness with PostNord
Creating a great purchasing experience is not just about selling products of great quality – nowadays, how the product is delivered is just as important. As a contracted client of PostNord you have access to Portal Business, a platform which makes your daily work easier, and makes your customers want to return again and again.
Here’s what you can do in Portal Business:
Schedule, manage and track deliveries
In Portal Business you can manage everything related to all your company’s incoming and outgoing deliveries, including scheduling pickup, checking where a shipment is and taking action if something isn’t going to plan.
Get business reports
We continuously compile reports about the shipments of your business, their environmental impact and claims. Thanks to the reports you can make important business decisions based on facts and data, rather than feelings and guesswork.
Integrate your web store with PostNord
By connecting your web store with PostNord’s shipping solutions, your customers are able to tailor their deliveries based on their own preferences when paying for their purchase. The shipping details are then sent straight to us at PostNord.