Supply Planning for Promotions & New Products


Intense competition, a volatile economy and price conscious customers, challenge food and beverage companies’ attempts to increase market share and achieve profitability goals. The key for food companies is to successfully distinguish themselves from the competition and build sales in this demanding economic environment.

In order to boost sales, promotions of limited time offers (LTOs) and new menu items has emerged as a key revenue generation strategy to increase sales, introduce new products, counteract competition or potentially attract new customers. Promotions entail a great revenue opportunity with an equally strong challenge to manage the uncertain demand created by LTOs and new menu items. This paper explains how to achieve a well-orchestrated supply plan in spite of demand uncertainty and commodity volatility.