July 17, 2023
Demand planning process
In this video, we will discuss the key steps in a world-class Demand Planning process. We will explain the importance of each step and how they work together to create a high-quality demand plan.
Demand planning is the process of forecasting future demand and making decisions based on that forecast. A world-class Demand Planning process includes a number of key steps, which are:u003cbru003e1. Data collection and automation: This step involves collecting all of the data that is needed to create a forecast, such as historical sales data, market trends, and competitive information. This data can be collected from a variety of sources, such as spreadsheets, databases, and ERP systems.u003cbru003e2. Post-game analysis: This step involves analyzing the results of the previous forecast to identify any areas where the forecast was inaccurate. This information can then be used to improve the accuracy of future forecasts.u003cbru003e3. System-generated forecast: This step involves using a forecasting model to generate a forecast for the future. There are a variety of forecasting models available, and the best model for a particular situation will depend on the data that is available and the level of accuracy that is desired.u003cbru003e4. Review and collaboration: This step involves reviewing the system-generated forecast with stakeholders to ensure that it is accurate and realistic. This is also an opportunity to get feedback from stakeholders and to make changes to the forecast as needed.u003cbru003e5. Risk and opportunity assessment: This step involves identifying the potential risks and opportunities that could impact the forecast. This information can then be used to develop contingency plans in case the forecast is inaccurate.u003cbru003e6. Publication and disaggregation: This step involves publishing the forecast to stakeholders and disaggregating it to the level of detail that is needed.u003cbru003e7. Demand supply matching: This step involves matching the forecast to the supply chain's ability to meet demand. This is done to ensure that there are no gaps or surpluses in inventory.u003cbru003e8. Integrated business planning: This step involves integrating the demand plan with other business plans, such as the sales plan and the marketing plan. This ensures that all of the plans are aligned and that the company is working towards the same goals.
