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 being a business forecaster - looking at past sales, market trends, and customer behavior to make smart guesses about future needs. This helps companies make better decisions about inventory, production, and staffing. Demand Planning is part of the larger supply chain process, working alongside other planning tools like Sales and Operations Planning (S&OP) or Integrated Business Planning (IBP). Companies use this to avoid having too much inventory (which wastes money) or too little (which disappoints customers).
Examples in Resumes
Led Demand Planning initiatives resulting in 30% reduction in excess inventory
Implemented new Demand Planning software to improve forecast accuracy by 25%
Coordinated Demand Planning processes across 5 regional markets
Managed monthly Demand Planning and Demand Forecasting meetings with sales teams
Typical job title: "Demand Planners"
Also try searching for:
Where to Find Demand Planners
Professional Organizations
Online Communities
Networking Resources
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where sales forecasts consistently differ from actual demand?
Expected Answer: A senior planner should discuss analyzing root causes, collaborating with sales teams, implementing forecast accuracy metrics, and developing action plans to improve alignment between forecasts and actual demand.
Q: How do you balance inventory optimization with customer service levels?
Expected Answer: Should explain approaches to finding the sweet spot between keeping enough stock to satisfy customers while minimizing excess inventory costs, using data-driven decisions and risk management strategies.
Mid Level Questions
Q: What factors do you consider when creating a demand forecast?
Expected Answer: Should mention historical sales data, seasonal patterns, market trends, promotional activities, competitive activities, and economic indicators.
Q: How do you collaborate with other departments in the planning process?
Expected Answer: Should discuss regular meetings with sales, marketing, and production teams, sharing of forecasts, and how to resolve conflicts between different department needs.
Junior Level Questions
Q: What is the difference between forecasting and planning?
Expected Answer: Should explain that forecasting predicts future demand based on data and trends, while planning involves creating action steps to meet that predicted demand.
Q: How do you measure forecast accuracy?
Expected Answer: Should be able to explain basic forecast accuracy metrics like Mean Absolute Percentage Error (MADE) and how to track forecast versus actual sales.
Experience Level Indicators
Junior (0-2 years)
- Basic forecasting methods
- Data analysis and Excel skills
- Understanding of supply chain basics
- Report creation and presentation
Mid (2-5 years)
- Advanced forecasting techniques
- Planning software expertise
- Cross-functional collaboration
- Performance metrics analysis
Senior (5+ years)
- Strategic planning implementation
- Team leadership and mentoring
- Advanced analytics and modeling
- Process improvement expertise
Red Flags to Watch For
- No experience with forecasting or planning software
- Poor understanding of basic supply chain concepts
- Lack of analytical or mathematical skills
- No experience with cross-functional collaboration
- Unable to explain basic forecasting metrics
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