Demand Planning Guidelines: Navigating the Complexities for Optimal Results

Some Rules to Keep in Mind for Demand Planners (Contd.)

4. 𝗗𝗼𝗻’𝘁 𝗽𝘂𝘁 𝗮𝗹𝗹 𝘆𝗼𝘂𝗿 𝗲𝗴𝗴𝘀 𝗶𝗻 𝗼𝗻𝗲 𝗯𝗮𝘀𝗸𝗲𝘁 𝘄𝗵𝗲𝗻 𝗶𝘁 𝗰𝗼𝗺𝗲𝘀 𝘁𝗼 𝗱𝗲𝗺𝗮𝗻𝗱 𝗳𝗼𝗿𝗲𝗰𝗮𝘀𝘁𝗶𝗻𝗴 𝗺𝗲𝘁𝗵𝗼𝗱𝘀.

It’s important to use a variety of methods to get the most accurate picture of demand.
For example, don’t rely on your gut feeling or online sales data. Use a variety of methods to make sure you’re not missing anything.

Don’t rely on one demand forecasting method.

Different methods can provide different insights.
So it’s important to use a combination of methods to get a more accurate picture of demand.
For example, time-series analysis may provide a good forecast of demand for a category. But combining it with consumer survey data may give a more complete picture of the demand.

5. 𝗗𝗼𝗻’𝘁 𝗶𝗴𝗻𝗼𝗿𝗲 𝘁𝗵𝗲 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗲𝘅𝘁𝗲𝗿𝗻𝗮𝗹 𝗳𝗮𝗰𝘁𝗼𝗿𝘀 𝗼𝗻 𝗱𝗲𝗺𝗮𝗻𝗱.

Things like the weather, pop culture, and even the phase of the moon can impact demand.
For example, don’t stock up on “raincoats” in the middle of winter. Because even though they’re practical, they’re not going to sell in the heat.

Don’t ignore the impact of external factors.

Things like
– economic conditions,
– seasonality, and
– competitors
can all have a big impact on demand, so it’s important to consider them when making demand forecasts.
For example, during an economic downturn, consumer spending on diamond jewellery may decrease. So it would be wise to adjust demand forecasts .

6. 𝗗𝗼𝗻’𝘁 𝗲𝘅𝗽𝗲𝗰𝘁 𝗱𝗲𝗺𝗮𝗻𝗱 𝘁𝗼 𝗯𝗲 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁 𝗮𝗹𝗹 𝘁𝗵𝗲 𝘁𝗶𝗺𝗲.

Even the most popular products can have fluctuations in demand. For example, don’t assume that “fidget spinners” will be popular forever.
The fad will die down.

Don’t assume that demand will always be consistent.

Even popular items can experience fluctuations in demand.
So it’s important to watch demand and make adjustments as needed.
For example, demand for gold coins may be consistent throughout the year. But during the festival season, the demand may spike.