Demand Planning

Core Concepts

Definition

Demand planning is the process of forecasting demand to ensure that a company can meet customer demands in a timely and efficient manner.

Detailed Description

Demand planning is a critical business process that involves using various statistical tools and techniques to predict future customer demand for a company's products. It integrates historical sales data, market trends, and other relevant information to create an accurate forecast, which helps organizations optimize inventory levels, reduce costs, improve customer satisfaction, and enhance supply chain efficiency.

Key Features

Integration with supply chain management
Inventory management optimization
Sales forecasting
Scenario planning
Statistical modeling and analysis

Common Modules

Inventory Management

Monitors and manages stock levels based on demand forecasts.

Sales and Operations Planning (S&OP)

Integrates sales forecasts and operational plans to ensure cohesive demand and supply alignment.

Popular Implementations

Oracle Demand Management

Provides tools to generate advanced demand forecasts using machine learning capabilities within Oracle Cloud.

SAP Demand Planning

A component of SAP's Advanced Planning and Optimization module offering powerful demand forecasting capabilities.