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Many operating decisions are based on how much demand there is for a given product and the ability for a company to profitably satisfy that demand. It is crucial to ensure the decision-making process happens prior to the point of sale so companies are in the best possible position to efficiently and effectively meet that demand.

This requires demand planners to collaborate with key stakeholders across the organization as well as outside the company with partners, suppliers, etc. to ensure there is strong alignment of supply with demand. In doing so, one of the goals of is to ensure the right levels of inventory, and align execution capacity to deliver the right products to the right customers.

Demand planning has long been the key driver in the supply chain and is an intricate discipline involving many factors to effectively anticipate and meet the needs of customers.â€¯When performed effectively, demand planning is a substantial contributor to both profit and customer satisfaction. On the flip side, poor planning can result in significant supply chain disruptions. Failing to keep up with demand typically results in dissatisfied customers and lost revenue.

Implementing solid demand planning practices offers a number of benefits. Here are just 4 reasons why demand planning is critical business practice.

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