By: Greg Spira and Charity Lopez
As a company responds to and predicts consumer trends, it will make a series of assumptions about those trends that inform its demand planning. These assumptions can make or break a company’s business strategy, so it’s important that they’re well vetted. An incorrect assumption that demand will remain high indefinitely, for instance, can leave a company with more product than it can handle when that demand eventually subsides. A correct assumption, on the other hand, can keep the company on the pulse of changing buying patterns so it can adjust its strategy as needed.
While vetting your assumptions may extend the demand planning process slightly, due diligence in this part of the process could save you time and money after a strategy has been implemented. Good questions lead to good assumptions, and good assumptions are good business.
Watch the webinar on this same topic.