Strategic Guidelines for Effective Demand Planning in Business
[SUMMARY]
10 Tips for Demand Planners
Some Rules to Keep in Mind for Demand Planners
1.๐๐ผ๐ป’๐ ๐๐ฟ๐๐๐ ๐๐ผ๐๐ฟ ๐ด๐๐ ๐๐ต๐ฒ๐ป ๐ถ๐ ๐ฐ๐ผ๐บ๐ฒ๐ ๐๐ผ ๐ฑ๐ฒ๐บ๐ฎ๐ป๐ฑ ๐ฝ๐น๐ฎ๐ป๐ป๐ถ๐ป๐ด, ๐๐ฟ๐๐๐ ๐๐ผ๐๐ฟ ๐ฑ๐ฎ๐๐ฎ!
Because you think a certain product is going to be hot, doesn’t mean it will be.
For example, don’t stock up on “unicorn onesies” for adults because you think it’s a good idea.
Trust the data and avoid looking like a fool.
Also, Don’t always rely on historical data.
While past sales can be a helpful guide. It’s important to also consider current market trends and changes in consumer behaviour. For example, if the gold prices are high in the market, it is likely that the demand for gold jewellery will decrease.
So, relying on historical data without considering external factors could lead to overstocking.
And lower sales.
2. ๐๐ผ๐ป’๐ ๐ณ๐ผ๐ฐ๐๐ ๐ผ๐ป๐น๐ ๐ผ๐ป ๐๐ต๐ฒ “๐ฏ๐ถ๐ด ๐ฑ๐ผ๐ด๐” ๐ถ๐ป ๐๐ผ๐๐ฟ ๐ถ๐ป๐๐ฒ๐ป๐๐ผ๐ฟ๐.
Sometimes, it’s the little “underdog” products that surprise you with their steady demand.
For example, don’t overlook that bulk bin of “fanny pack” purses because they’re not the trendiest thing. They might be the steady seller you need.
Don’t just focus on the best-selling items.
While it’s important to make sure you have enough stock of popular items.
It’s also important to pay attention to less popular items that still have steady demand.
For example, diamond stud earrings may not be the top-selling item but still have a steady demand. Ignoring these less popular items could lead to stockouts and lost sales.
3. ๐๐ผ๐ป’๐ ๐ผ๐๐ฒ๐ฟ๐๐๐ผ๐ฐ๐ธ ๐๐ผ๐๐ฟ ๐ถ๐ป๐๐ฒ๐ป๐๐ผ๐ฟ๐ ๐๐ผ ๐ฎ๐๐ผ๐ถ๐ฑ ๐ฏ๐ฒ๐ถ๐ป๐ด ๐ฐ๐ฎ๐๐ด๐ต๐ ๐๐ถ๐๐ต๐ผ๐๐ ๐๐๐ผ๐ฐ๐ธ.
Overstocking leads to wasted money, and nobody wants that. Instead, use demand forecasting to make sure you have the right amount of stock to meet demand.
For example, don’t order 10,000 “fidget spinners” because you’re afraid of running out.
You’ll be stuck with a warehouse full of them.
Don’t overstock items to avoid stockouts.
Overstocking can lead to high inventory carrying costs and markdowns.
Instead, understand demand and order enough stock to meet that demand.
For example:
You expect a particular design of gold necklace to have a high demand for the upcoming marriage season. It would be wise to order enough stock to meet the demand without overstocking.