The aim of Demand Planning: Credible plans for investing money and resources to execute
Demand planning is planning all demand for products and services to support the marketplace.
When companies perform demand planning well, they increase the probability that their sales and marketing plans will be executed. They also better ensure that demand creation activities are executed on time and on budget while meeting their business objectives.
To do Demand Planning well requires:
Involving all functional areas responsible for demand creation activities in the demand planning process. That includes sales, marketing, and other commercial organizations – and even customers at times.
Being responsible and accountable for communicating the demand plan to those who need to know in order to perform their responsibilities. That includes the supply and finance organizations.
Problems That Effective Demand Planning Helps Solve
When companies decide to improve their Demand Planning process, they typically focus on solving these types of chronic problems:
- Sales revenue and profit goals are routinely missed
- Product is not available when and where customers want it
- Inventory investment is high, yet product frequently is not available to support customer orders
- The statistical forecast inaccurately predicts future sales
Ways to Improve Your Company’s Demand Planning
Oliver Wight has been helping companies to develop excellence in Demand Planning for more than 30 years in the following ways:
Contact us to discuss ways to improve your company’s Demand Management.
Insights on Demand Management: