03 August, 2021

The 4 Principles of Demand Planning

Companies fall in two categories vis a vis inventory forecasting, a white paper written exclusively for Cin7 asserts.

One type of company makes forecasting (or demand planning) a top priority to optimize its supply chain management. Another asserts there is no point to predicting the future.

Those who don’t prioritize demand planning make excuses, like “We know forecasts will be wrong” or “Ours is an in which it is impossible to forecast”, writes supply chain expert Keith McNeil in his How to Master Demand Planning paper.

“Yet, most businesses are driven ultimately by a series of planned sales numbers,” he writes.

The goal of demand planning is to move toward perfect order fulfilment with optimal inventory levels. In this paper, McNeil describes the rationale for demand planning, four guiding principles to forecasting, and a process that any organization can use to make it an indispensable tool. Demand planning is not the fortunetelling exercise that neigh-sayers may have you believe, but properly executed, it is the best educated guess an organization can make.

“The more accurate that you are able to make your forecasts, the less inventory you will need to cover fluctuations in demand,” McNeil writes. “This in turn allows you to deliver higher customer service, better control of working capital and better profitability.”

Download the guide now: How to Master Demand Planning




You might also like

The 7 Core Benefits of AI-Powered Supply Chains

The advancement of technology has revolutionized every facet of modern life. In the goods and services industry in particular, there has been remarkable progress.

7 Supply Chain Lessons of the COVID-19 Crisis

One way or another, every business has been affected by the COVID-19 pandemic. But because we’re all in this together, we at Cin7 reached out to some of our customers to learn how they are coping with the current situation.

5 Ways to Boost Your eCommerce Business with Supplier Negotiations

Negotiating with suppliers is one of the best ways to reduce your business costs and increase your profits. Favorable contracts with your suppliers can give you an edge over your eCommerce competitors.