A collaborative approach is also required to deal with different functions across the business and reach consensus for forecast figures. The goal is to create a forecast based on relevant market information that allows a company to accurately gauge demand for its products, and effectively organize resources to meet this demand.
The desired outcome of an accurate forecast is improved inventory, satisfied customers and the ability for Sales and Marketing to shape demand. A strong analytical and quantitative mindset is required to handle and interpret large amounts of data. Experience with databases and statistics is a basic requirement, although the academic background of many successful analysts is broad, including the arts. The forecast analyst and demand planner must use their forecast to paint a picture of what Sales can realistically achieve.
Sales may not necessarily agree with these findings — after all, if a planner raises the forecast of what is possible, there may be push-back on having to hit higher targets. This, therefore, require soft-skills to influence key stakeholders to implement the forecast within the operation strategy.
A thick-skin is also required. In that sense, forecasts are never exactly correct, and forecast analysts may find themselves shouldering the blame when figures are not met. Forecast analysts and demand planners must see the bigger picture in order to effectively implement findings. The unique combination of skills involved in the role, and exposure to the Sales and Marketing and Finance functions, is ideal for progression to executive management.
Forecast analysts are data-oriented number crunchers, right? Yes, but not only that. The forecast analyst combines a numerate capability with a broader business savvy, leveraging hard data to make real business decisions. Sitting between different departments, demand planners are truly cross-functional and aim for the forecasting and planning processes to sit at the core of the business as an integrated tool for growth - one that drives operations and strategy.
Most forecasts analysts and planner join as graduates, but not all. Knowledge from different functions is often highly valued. Demand planning is a multi-step process, dependent on the right tools, information and processes. Often, there can be unique nuances in the process, based on product positioning, inventory needs and organizational goals, but some best practices to keep in mind include:.
There is a plethora of options when it comes to enterprise resource planning ERP systems, so choosing the right one can be tricky. Data drives demand planning, now more than ever. Real-time visibility into inventory movements coupled with metrics reports that paint a clear picture and data mining and aggregation that can identify areas for improvement or reaction can help to create more agile process modelling.
Lacking a defined process for a demand planning cycle leads to chaos. Confusing process with information that is simply a set of widely known facts around an organization is all too common, making it difficult to hold anyone accountable, and thus hurting overall performance.
For most companies, the steps in the demand planning process go something like this:. Successful demand planners usually design a pilot version of the plan using historical data, or descriptive analytics , as a basis.
They also make regular adjustments and have a team of people dedicated solely to devising the plan, implementing it, reducing error and bias, and designing processes for execution. Like many business needs, supply chain and demand planning are going digital. Advances in applications of machine learning within the supply chain are making it possible to adapt and update forecasts in real time, allowing inventory to run leaner, without missing the mark on demand.
For supply chain professionals, understanding how to use digital enterprise architectures and implementing artificial intelligence and machine learning programs that can help optimize a lean, agile and data-driven approach will reveal new ways to cut costs in operations, boost revenue and offer a greater competitive edge.
A better-connected supply chain means demand planning can be conducted even more in the moment. Fill out the form to get program details and access to valuable resources. Fill out the form below to get started and take the next step toward your educational goals. I understand calls and texts may be directed to the number I provide using automatic dialing technology. I understand that this consent is not required to purchase goods or services.
Other software tools are critical in forming the kinds of projections that company management will look for. This is why it helps for someone in this field to have a general knowledge of IT. Many experts point out that the various skills for a demand planner include not only technical awareness, but also a variety of hands-on approaches to product development.
The demand planner may need to visit physical locations to get a better personal outlook on the movements of products or materials, and other events in the supply chain. Logistics, or supply-chain, oriented degrees or qualifications may help the demand planner to establish his or her applicable skills to a potential employer. Please enter the following code:.
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