Demand planning for organization’s sales and operation planning or S&OP is a set of functionalities around demand management, statistical forecasting, promotion, and life-cycle planning processes. Demand planning uses analytics to optimize S&OP with forecasting for consumer goods companies, and regulate the ordering cycle to align the inventory planning process to demand management data acquired via statistical forecasting and other forecasting models, and reduce wastage. Demand planning – including demand management – is, therefore, an integral part of any organization’s sales and operation planning process(S&OP).
Industry leaders in demand planning and demand management are gradually shifting from spreadsheet solutions for sales and operation planning or S&OP to more integrated software solutions that better enable customer collaboration, statistical forecasting of demand, demand analytics and reporting, exception management, forecast dis-/aggregation, and similar forecasting models/tools. Organizations are also increasing use of real-time downstream data, demand-sensing technology, and near-term information to refine short-term forecast by item and distribution center, in order to enhance demand planning and optimize S&OP.
Currently, demand volatility is a challenge for demand management due to proliferation of products and the changing needs of customers, which are significant hurdles to demand planning and inventory planning. Additionally, the traditional design of the supply chain prohibits it from sensing (via forecasting models) and responding to market volatility for enhanced S&OP.
Demand & Supply Planning
Demand and Supply Planning consist of advanced and integrated planning systems to help you generate accurate market forecasts with the ability to carry out exception-based planning and create short-term supply & operations plans.