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23 Jun 2021

True Demand: A Key Building Block In Your Demand Planning Process

An important building block to creating an accurate demand plan is the veracity of your demand history. Since the purpose is to forecast all unconstrained customer demand in the future, we need to define and collect a history of true demand. Since demand itself is unobservable, we use a proxy such as history of shipments or customer orders to measure demand. But what is the trade-off one needs to think in picking shipments over the orders or vice versa? Is this a onetime activity or a continuous improvement process? At what level do you define True Demand? At product level or product–customer level? Or something else?

In our May workshop, as a part of our data cleansing section we take a deep dive into understanding the significance of True Demand, while illustrating arguments in favor and against using proxy measures and suggesting some methods to address the corrections. Attendees will solve a case study using Excel data to conclude the findings one way or another.  

Download the resources on True Demand - Click here

For Workshop Details & Registration - Click here

 

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