Demand Planning
Demand Planning is a business process that helps companies predict how much of their products customers will want to buy in the future. It's like weather forecasting, but for product sales. This role involves looking at past sales data, market trends, and seasonal patterns to make smart decisions about inventory levels and production schedules. Companies use this information to make sure they don't order too much (which wastes money) or too little (which disappoints customers). This is a key part of supply chain management, similar to inventory planning or sales forecasting. People in this role often work closely with sales teams, manufacturing, and warehouse managers to keep the business running smoothly.
Examples in Resumes
Reduced excess inventory by 30% through implementing Demand Planning strategies
Led Demand Planning and Demand Forecasting initiatives across 5 product categories
Utilized Demand Planning tools to improve forecast accuracy from 75% to 90%
Coordinated Demand Planning processes between sales and supply chain teams
Typical job title: "Demand Planners"
Also try searching for:
Where to Find Demand Planners
Professional Organizations
Online Communities
Job Resources
Example Interview Questions
Senior Level Questions
Q: Can you describe a time when you improved a company's demand planning process?
Expected Answer: Look for answers that show they've led improvements in forecast accuracy, reduced inventory costs, or implemented new planning systems. They should mention working across departments and measuring results.
Q: How do you handle conflicting input from sales and finance teams in your demand planning?
Expected Answer: Strong answers should show experience in balancing different departmental needs, using data to make decisions, and maintaining good relationships across teams.
Mid Level Questions
Q: How do you account for seasonality in your demand forecasts?
Expected Answer: Candidate should explain how they use historical data, consider seasonal patterns, and adjust forecasts based on factors like holidays or weather.
Q: What metrics do you use to measure forecast accuracy?
Expected Answer: Should mention common measures like forecast accuracy percentage, mean absolute error, or bias, and explain how they use these to improve planning.
Junior Level Questions
Q: What factors do you consider when creating a demand forecast?
Expected Answer: Should mention basic elements like historical sales, market trends, seasonality, and promotional activities.
Q: How do you gather data for demand planning?
Expected Answer: Should describe working with sales data, collaborating with sales teams, and using planning software to collect and analyze information.
Experience Level Indicators
Junior (0-2 years)
- Basic forecasting methods
- Data analysis and Excel skills
- Understanding of supply chain basics
- Report creation and data entry
Mid (2-5 years)
- Advanced forecasting techniques
- Planning software expertise
- Cross-functional collaboration
- Process improvement
Senior (5+ years)
- Strategic planning leadership
- Team management
- Project implementation
- Advanced analytics and modeling
Red Flags to Watch For
- No experience with forecasting software or Excel
- Poor understanding of basic supply chain concepts
- Lack of analytical skills or attention to detail
- No experience working with sales or operations teams
- Unable to explain how to measure forecast accuracy
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