Demand planning works better with scenario ranges than single forecasts. DDMRP, forecasting, or hybrid approaches suit different SKU types, while scenario-based planning lets teams adjust daily when trends shift, keeping cash and customer satisfaction within control limits.
strategy, we may depend on a DDMRP model, or we may go for a forecasting or DDMRP combination model, and then different strategy for ABC class of SKU. So these are the— then again become it's a kind of an S&OP or daily operational matter how we manage the inventory. But the finance part, if we are talking about finance, it generally gets budgeted beginning of the year because that's the boundary you have to set, and then we play between That's a great takeaway on setting the boundaries through DIU at the starting of the year.
Federico, you have also raised your hand. I'd love to hear your thoughts on this. You're on mute.
Sorry, my bad. I just want to add a couple of points. First of all, I think it's quite interesting how we all talk about demand planning with all the most constant feedback is our demand planning is not good enough, we need to improve. And I think it's like a never-ending story. So what we do to somehow take away around the complexity of planning demand is we work a lot with concept of scenarios and we stop thinking about deterministic results. So we will end with this level of inventory, we will generate this level of sales, and we will sell exactly this margin. But we try now to think more and more in terms of what is the boundaries plus minus where we want to arrive and what are the kinds of decisions we will take day by day to correct if we see a trend going somewhere where we are not happy. And this helps a lot to make sure that we don't get disappointment. We get people still committed and engaged in doing things and keeping the company within boundaries of control. Because at the end of the day, what we are trying to do is not to, you know, reach a very specific line, but we want to take the company in a matter of control in terms of cash generation, customer satisfaction, and so on.
