Demand planning is the process of forecasting future demand for a company’s products or services. It involves analyzing historical sales data, market trends, and other relevant factors to predict future demand. The goal of demand planning is to ensure that a company has the right amount of inventory on hand to meet customer demand without overstocking or understocking. Effective demand planning can help a company reduce costs, improve customer satisfaction, and increase profitability. It requires collaboration between different departments within a company, including sales, marketing, and operations. By accurately predicting demand, companies can make informed decisions about production, purchasing, and distribution. This can help them optimize their supply chain and improve overall efficiency. Demand planning is an essential component of any successful business strategy, as it allows companies to stay ahead of changing market conditions and customer preferences.
