Success in Demand Planning Roles: Part 1 of 2
Demand Planning is a delicate balance between forecasting the product you will need and being able to sell to avoid a surplus, all while keeping an eye on your rebate budget and making predictions for an unstable supply chain.
A blend of skills is required and the success of your quarter, year, or even your organization may depend on getting it right.
The demand planning function is so important that we decided to dedicate a two-part series to help you understand what’s happening with the role including the latest trends and expert insights from some of the best in the industry.
What is demand planning? How does it impact business?
Demand planning is a supply chain management process of forecasting, or predicting the demand for products to ensure they can be delivered and satisfy customers.
The goal is to strike a balance between having sufficient inventory levels to meet customer needs without having a surplus.
What are some of the roles involved in demand planning?
Product Portfolio Management: Product portfolio management oversees the overall product lifecycle, beginning with the introduction of a product through to its end of its time on the shelf.
Statistical Forecasting: Statistical forecasting creates supply chain forecasts utilizing statistical algorithms
Trade Promotion Management: The goal of a trade promotion is to help a brand connect with a customer, often through an in-store giveaway, discount, or promotion, and these events can impact the demand for a product. See more about our omnichannel hiring expertise here.
As best summarized in this article: “If product isn’t available for customers to purchase because it’s out of stock, businesses lose out on revenue, and over time, they could lose the customer to a competitor. On the other hand, sitting on a slew of unused inventory incurs both space and production costs unnecessarily.”
Demand planning requires organizations to look ahead and predict the demand for their product and manage inventory levels accordingly while avoiding having a surplus of goods.
Not only do companies have to do this in order to plan for their hiring needs they also need to hire people who will be able to quickly and successfully assume accountability and leadership in the process. Demand planning requires a set of specific skills that are vital to avoid any number of issues down the line.
This is part of the reason why we talk so much about the importance and value of a 1Up hire and succession planning – both of which TZR can help you with today so you’re ready for the future.
We also mapped out some insights here in regard to why growth in demand equals the need for better talent. Check back soon and make sure you’re signed up for our monthly newsletter for part two of our series where we discuss how we hire for demand-planning roles including some key characteristics that you may not have thought of but we have found make all the difference.