Demand Planning
Demand Planning is a business process that helps companies predict how much of their products or services customers will want in the future. It's like a sophisticated form of forecasting that combines historical sales data, market trends, and business intelligence to help companies stock the right amount of products at the right time. This role is crucial because it helps businesses avoid having too much inventory (which wastes money) or too little (which disappoints customers). Think of it as being the company's crystal ball for predicting future customer needs, which helps with everything from ordering materials to planning warehouse space.
Examples in Resumes
Reduced inventory costs by 25% through implementing Demand Planning strategies
Led Demand Planning initiatives across 5 regional distribution centers
Developed Demand Planning and Supply Chain Forecasting models for seasonal products
Typical job title: "Demand Planners"
Also try searching for:
Where to Find Demand Planners
Professional Organizations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where actual sales significantly deviate from forecasts?
Expected Answer: A senior planner should discuss their approach to analyzing root causes, adjusting forecasting models, collaborating with sales and marketing teams, and implementing both short-term solutions and long-term strategic changes to improve accuracy.
Q: How do you balance competing priorities between sales, finance, and operations teams?
Expected Answer: Should demonstrate experience in stakeholder management, explain how to align different departmental goals, and show ability to make data-driven decisions that benefit the overall organization while maintaining good relationships.
Mid Level Questions
Q: What metrics do you use to measure forecast accuracy?
Expected Answer: Should mention common metrics like Mean Absolute Percentage Error (MAPE), forecast bias, and tracking signals, explaining them in simple terms and how they help improve planning accuracy.
Q: How do you account for seasonality in your demand planning?
Expected Answer: Should explain how they analyze historical patterns, consider special events, promotions, and market trends, and adjust forecasts accordingly.
Junior Level Questions
Q: What basic factors influence demand forecasting?
Expected Answer: Should mention historical sales data, seasonality, market trends, promotional activities, and basic economic factors that affect customer demand.
Q: How do you gather and organize data for demand planning?
Expected Answer: Should demonstrate understanding of data collection from various sources, basic Excel skills, and ability to organize information in a way that helps identify patterns and trends.
Experience Level Indicators
Junior (0-2 years)
- Basic forecasting methods
- Excel and data analysis
- Understanding of supply chain basics
- Report creation and data entry
Mid (2-5 years)
- Advanced forecasting techniques
- Inventory management
- Cross-functional collaboration
- Planning software expertise
Senior (5+ years)
- Strategic planning
- Team leadership
- Advanced analytics
- Process optimization
Red Flags to Watch For
- No experience with forecasting or planning software
- Poor understanding of basic supply chain concepts
- Lack of analytical skills or data interpretation ability
- No experience working with cross-functional teams
Related Terms
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