The demand planning cycle is a supply chain management process that uses forecasting to understand the demand for products. It ensures that the products can be delivered to the satisfaction of your customers. Demand planning strikes the balance between having sufficient stock levels to meet demand without having surplus.
The demand planning cycle uses the following systems:
Data management is the practice of gathering data and information in one place so that there is a single source of truth. By taking your data from flat file to web API, you’re able to connect different apps. This allows you to interconnect apps for modern and dynamic data gathering. Data management allows you to easily pull up information and become proactive rather than reactive to changes in your business environment.
Portfolio management allows you to keep teams aligned, increase visibility and make better decisions so that there is seamless communication at every stage of production. This creates the ability to oversee the overall product lifecycle, beginning with the introduction of new products through to the end-of-life planning.
Demand planning software gives your business forecast automation solutions that assist in resolving volume relationships through demand review. In turn, your business can prepare for future customer demand. What’s more, forecast automation gives your business the ability to automate the process, which saves you time.
Collaboration/ Demand review
Collaboration tools give you the ability to apply judgment throughout the process. But also gain insights through all functions of the business. This creates real-time cohesion through your teams and provides an environment where data and team dynamics can be utilized simultaneously.
Performance metrics and KPIs
Demand planning software allows you to create performance metrics and key performance indicators (KPI) to benchmark your company’s success. By having performance metrics and KPIs, you’ll be able to see where your weak points are in your supply chain and rectify issues before they become major impediments.
By having a demand planning cycle in place you’ll be able to improve your business accuracy, save time, and ensure better revenue figures. Effective demand planning can assist supply chain managers to accurately forecast product production and save them time in crunching data. What’s more, you can see issues before they impact the business negatively and can react accordingly.
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