What is Demand Planning?
Imagine a F&B retailer preparing for the upcoming holiday season. They analyze historical sales data from the previous year's holiday season, considering factors such as the popularity of certain products, sales promotions, and external influences like weather conditions. Based on this data, the demand planning software predicts an increase in demand for cakes, cookies, and ice cream.
Armed with this insight, the retailer can now take proactive steps to prepare for the peak season. They place orders with their suppliers well in advance to ensure sufficient stock levels, negotiate better prices due to the early orders, and plan their marketing campaigns around the popular products. Consequently, they avoid stockouts and capitalize on the increased demand, leading to higher sales and customer satisfaction.
What is a Demand Planning Software?
Demand planning software is a type of software application that helps businesses predict future demand for their products or services. This software uses statistical models and algorithms to analyze historical data, market trends, and other variables to generate accurate demand forecasts
Who Uses Demand Planning Software?
Demand planning software benefits a wide range of industries, from retail and manufacturing to distribution and e-commerce. Any business dealing with fluctuations in demand, seasonal variations, or product lifecycles can gain a competitive edge by implementing demand planning software.