Demand planning is a strategic, cross-functional supply chain management process that forecasts future customer demand for products or services using systematic data analysis and collaborative input from multiple business units. This process combines historical sales data, market intelligence, promotional activities, and external factors to predict what customers will purchase, when they will purchase it, and in what quantities. The primary objective is to balance inventory levels and resource allocation to meet customer needs efficiently while minimizing excess stock, stockouts, and associated carrying costs.
Key Components of Demand Planning
- Data Collection and Analysis
- Cross-Functional Collaboration
- Forecast Generation and Refinement
- Integration with Supply Chain Execution
