Demand planning – what is it?
Demand planning is a process that involves forecasting future demand for products or services, which is crucial for effective inventory and resource management. Its goal is to ensure that the right amount of goods will be available at the right time, which in turn allows companies to better respond to market needs.
As part of demand planning, companies analyze various factors such as historical sales data, market trends, seasonality and competitor activities. This information is then used to create forecasts that help guide production, purchasing and distribution decisions.
Accurate forecasts help avoid both excess inventory, which can lead to waste, and shortages, which can result in lost customers. Increasingly, companies are using advanced analytical tools and technologies such as artificial intelligence to increase the accuracy of their forecasts and better adapt to changing demand.
With effective demand planning, companies can not only increase their competitiveness, but also improve their overall operational efficiency.
Frequently asked questions
1 What are the benefits of demand planning?
Benefits include better inventory management, reduced warehousing costs, and increased customer satisfaction through better product availability.
2 What are the methods of demand planning?
Methods include statistical forecasting, analyzing market trends, and working with trading partners to obtain more accurate forecasts.
