StartArticlesDemand planning: why this process is vital for the success of...

Demand planning: why is this process vital for the success of companies?

THEdemand planningIt is a process that allows anticipating problems and optimizing resources, avoiding the formation of excess inventories and reducing costs, while ensuring product availability and increasing customer satisfaction. Your development should involve coordinating all departments, ensuring accurate estimates and establishing future policies and commercial strategies, aligning operations with market needs.

From theory to practice 

The first step in developing thedemand planningis to collect and analyze historical sales data, considering seasonality and trends. Next, it is essential to seek information about competition, consumer behavior, and economic analyses. Integrating the sales and operations areas in a collaborative action is also an important step, known as S&OP (Sales and Operations Planning). In this process, the departments meet to discuss and align sales, manufacturing, and inventory forecasts. Finally, it is essential to continuously monitor demand and adjust planning as necessary, ensuring that the company adapts to any changes that may occur.  

Among the main functions of thedemand planning The key aspects are demand forecasting, which determines what and how much to produce in order to avoid excess or stock shortages; pattern identification, which analyzes periods of higher and lower demand to support managerial decisions; and alignment between sales and operations, to ensure that delivery capacity is in sync with forecasts, preventing discrepancies that could compromise operational efficiency.  

Benefits 

From thedemand planningThe purchasing department can determine in advance the necessary amount of raw materials to maintain a continuous flow of production and finished items to serve consumers promptly. This not only improves customer satisfaction and the company's image but also is sustainable, as it avoids waste. Furthermore, it allows for a more efficient organization of production, reducing storage costs and minimizing obsolescence. In this way, companies can optimize their resources, plan their budgets more accurately, and control their expenses effectively.

In conclusion, thedemand planningIt is a process that forecasts the future demand for products, aiming to optimize production, inventory management, and delivery logistics, ensuring that supply efficiently meets consumer needs. By integrating historical data, analyses, and collaboration betweenSales and OperationsIt is possible to make adjustments to facilitate efficient inventory and production management. Thus, companies can respond quickly and strategically to changes, maximizing their operational efficiency and competitiveness.  

Fernando Cavalcanti
Fernando Cavalcanti
Fernando Cavalcanti is Account Executive at 4intelligence, a company specializing in decision-making for businesses through data, artificial intelligence and integrated planning.
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