Importance of Demand Planning in a Supply Chain
In today's fast-paced supply chain industry, demand is volatile, networks are large, and consumer expectations constantly change. Even pu tting the political and post-pandemic effects of the world aside, the increasing reliance on eCommerce and same-day deliveries makes it hard for companies to cope with the changes. The only way to keep ahead is with effective supply chain planning and, most importantly, demand planning. Supply chain demand planning is the process of predicting and planning future demand based on past sales, changing market conditions, consumer trends, and more. Demand planning and forecasting in supply chain are often used synonymously. But demand forecasting is only a part of demand planning and only includes predicting future demand. On the other hand, demand planning concerns forecasting, supply chain planning, inventory management, and more. Importance of Demand Planning Demand planning is an initial and the most significant part of any supply ch