Where Does Your Company Stand In The Demand Planning Spectrum?

Planning is about the future. Although historical demand is a good starting point, it is important to have a forward looking view -

1. Customer level detailed view is critical for the short-term plan that spans the next thirteen weeks. Planning has to be bottom-up driven by intelligence coming from the market place and customer actions.

2. Product Level view is important for medium to long-term planning. This may be more than just data driven from the detailed level. Several possible scenarios of demand and supply have to be deliberated in the Long-term window spanning the next 18 months to two years. (these numbers could change by industry - a quick service restaurant that we consulted for has a one week short-term view and three month strategic view).

So what is the mid-term horizon?

The sweet spot that marries the Customer view and Product view so there is a dialogue and alignment on the plan.

In many client cases, we have observed either a heavy focus on the Customer view - leading to demand myopia or a top-down marketing domination which leads to forecasts not grounded on realities.

You may want to examine your planning process to see where does your company stand in this spectrum.

Know More...