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Strategic Guidelines for Effective Demand Planning in Business

[SUMMARY]
10 Tips for Demand Planners

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Some Rules to Keep in Mind for Demand Planners

1.๐——๐—ผ๐—ปโ€™๐˜ ๐˜๐—ฟ๐˜‚๐˜€๐˜ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ด๐˜‚๐˜ ๐˜„๐—ต๐—ฒ๐—ป ๐—ถ๐˜ ๐—ฐ๐—ผ๐—บ๐—ฒ๐˜€ ๐˜๐—ผ ๐—ฑ๐—ฒ๐—บ๐—ฎ๐—ป๐—ฑ ๐—ฝ๐—น๐—ฎ๐—ป๐—ป๐—ถ๐—ป๐—ด, ๐˜๐—ฟ๐˜‚๐˜€๐˜ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฑ๐—ฎ๐˜๐—ฎ!

Because you think a certain product is going to be hot, doesnโ€™t mean it will be.
For example, donโ€™t stock up on โ€œunicorn onesiesโ€ for adults because you think itโ€™s a good idea.
Trust the data and avoid looking like a fool.

Also, Donโ€™t always rely on historical data.

While past sales can be a helpful guide. Itโ€™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. ๐——๐—ผ๐—ปโ€™๐˜ ๐—ณ๐—ผ๐—ฐ๐˜‚๐˜€ ๐—ผ๐—ป๐—น๐˜† ๐—ผ๐—ป ๐˜๐—ต๐—ฒ โ€œ๐—ฏ๐—ถ๐—ด ๐—ฑ๐—ผ๐—ด๐˜€โ€ ๐—ถ๐—ป ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ถ๐—ป๐˜ƒ๐—ฒ๐—ป๐˜๐—ผ๐—ฟ๐˜†.

Sometimes, itโ€™s the little โ€œunderdogโ€ products that surprise you with their steady demand.
For example, donโ€™t overlook that bulk bin of โ€œfanny packโ€ purses because theyโ€™re not the trendiest thing. They might be the steady seller you need.

Donโ€™t just focus on the best-selling items.

While itโ€™s important to make sure you have enough stock of popular items.
Itโ€™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. ๐——๐—ผ๐—ปโ€™๐˜ ๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐˜€๐˜๐—ผ๐—ฐ๐—ธ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ถ๐—ป๐˜ƒ๐—ฒ๐—ป๐˜๐—ผ๐—ฟ๐˜† ๐˜๐—ผ ๐—ฎ๐˜ƒ๐—ผ๐—ถ๐—ฑ ๐—ฏ๐—ฒ๐—ถ๐—ป๐—ด ๐—ฐ๐—ฎ๐˜‚๐—ด๐—ต๐˜ ๐˜„๐—ถ๐˜๐—ต๐—ผ๐˜‚๐˜ ๐˜€๐˜๐—ผ๐—ฐ๐—ธ.

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, donโ€™t order 10,000 โ€œfidget spinnersโ€ because youโ€™re afraid of running out.
Youโ€™ll be stuck with a warehouse full of them.

Donโ€™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.

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