Have you ever wondered what a demand planner does? Working with a variety of departments they enhance the inventory operations of the companies they work with.
Companies everywhere employ demand planners. Demand planners work with a lot of departments to complete many tasks and projects. To understand the role of a demand planner, it’s important to first understand the concept of demand planning software.
Whether your company offers products or services, you experience demand from your consumers. There are many factors that affect consumer demand, and demand planning tools help demand planners understand them.
Demand planning software relies on the accuracy of forecasts, and these forecasts are often provided by the same demand planning system. Using the data from forecasts, demand planning software plans how to manage inventory to productively meet demand. Inventory levels become much more effective as they are managed by these methods.
What do Demand Planners do?
Using a Supply Chain Management system, demand planners develop reliable forecasts. In a way, these forecasts set the foundation for the rest of their work. Forecasts show predictions of what future trends will be. In this case, using data of forecast demand greatly helps demand planners know what’s up ahead. They need this information to make effective plans to meet upcoming consumer demand.
Demand planners work with multiple departments to complete their duties. They often work with marketing, sales, finance, retail data, and more departments. Each of these departments is affected by the quantity and sales of inventory, and demand planners help bridge gaps between departments.
Some of the beneficial services done by demand planners are revenue forecasting, inventory level accuracy, planning for materials, and more.
Revenue Forecasting
Just like it sounds, this is when educated predictions are made regarding how much revenue a company can expect to see within a given time period. This can be done monthly, quarterly, or annually.
This method of forecasting can be useful in multiple ways. Being aware of upcoming sales and revenue allows demand planners to avoid negative situations in production, for example avoiding a bottleneck in the warehouse that could result in a loss of sales.
It also gives a clearer view of what finances will look like. If a particular month or quarter is forecast to have less sales, then the demand planner can make sure production efforts are reduced during those times.
Inventory Level Accuracy
This responsibility is a big one, and it’s very important. Everything a business does can connect to inventory in some way.
Using demand forecasting software, demand planners have a clear perspective of what inventory needs to be in stock. Instances of overstock and stock-out situations can be very harmful to a business. Money is wasted, sale opportunities are missed, customer loyalty is decreased, and more negative things happen as a result of these unfortunate circumstances.
Accurate inventory brings with it a wave of positive effects. Warehouse operations improve as the inventory being managed is correct. Implementation of forecasting software can reduce inventory by 30%. Companies that experience this see an improvement in their finances, employee habits, customer retention, and more.
Planning for Materials
As demand planners become aware of what inventory levels need to be, they’re also able to better know what materials need to be procured for manufacturing and production of that inventory.
Have you ever gone grocery shopping when you’ve been hungry? Well, if you’re like me, everything looks and sounds good when you’re walking through isles of food with an empty stomach. I usually buy a bunch of random ingredients and snacks, and then I get home and have to find a way to put all my random items together into meals. I don’t really recommend this shopping method. Comparably, ordering inventory without a solid plan in mind doesn’t bring very beneficial results.
Demand planning solutions allow demand planners to use forecasts to purchase the correct type and quantity of materials.
What do Demand Planners Study?
It’s possible to become a demand planner with a variety of educational degrees. Some demand planners study business management, mathematics, statistics, supply chain management, data science, engineering, or logistics. However, it’s possible to be hired as a demand planner with an art or humanities degree as well.
The job comes with certain qualifications dependent on the employer’s needs and requirements.
Demand planners strengthen the companies that use them. They’re aware of so many outside factors, and they make sure their company is ready to meet them. The effectiveness of a demand planner is dependent on the quality of the demand planning tools they have access too.
If your company is looking for effective demand planning software, you’re at the right place. There are multiple options for demand planning solutions, and it’s important to find the best option for your specific needs.