{"id":10708,"date":"2021-10-12T16:17:29","date_gmt":"2021-10-12T23:17:29","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=10708"},"modified":"2023-12-01T15:20:35","modified_gmt":"2023-12-01T23:20:35","slug":"performance-in-the-demand-planning-cycle","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/10\/performance-in-the-demand-planning-cycle","title":{"rendered":"Performance in the Demand Planning Cycle"},"content":{"rendered":"<p><a href=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Performance-in-the-Demand-Planning-Cycle1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10709\" src=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Performance-in-the-Demand-Planning-Cycle1.jpg\" alt=\"\" width=\"1000\" height=\"653\" srcset=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Performance-in-the-Demand-Planning-Cycle1.jpg 1000w, https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Performance-in-the-Demand-Planning-Cycle1-300x196.jpg 300w, https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Performance-in-the-Demand-Planning-Cycle1-768x502.jpg 768w, https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Performance-in-the-Demand-Planning-Cycle1-696x454.jpg 696w, https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Performance-in-the-Demand-Planning-Cycle1-643x420.jpg 643w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\r\n\r\n<p>We\u2019ve discussed the benefits of <strong><a href=\"https:\/\/www.qad.com\/blog\/2021\/10\/how-to-gather-data-for-demand-planning\">gathering data<\/a><\/strong> and coming up with a strategy of <strong><a target=\"_blank\" href=\"https:\/\/blog.dys.com\/collaboration-and-demand-review\/\" rel=\"noopener\">collaboration<\/a><\/strong> when implementing a <strong><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/11\/the-demand-planning-cycle\" rel=\"noopener\">demand planning cycle<\/a><\/strong>. Now it\u2019s time to walk through the importance of Performance evaluation in the Demand Planning Cycle by setting metrics and KPIs.<\/p>\r\n\r\n\r\n\r\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/11\/what-is-demand-planning\" rel=\"noopener\"><strong>Demand planning<\/strong> <\/a>strikes the balance between having sufficient stock levels to meet demand without having surplus as the end goal. But setting performance and KPI objectives allows you to understand business targets and find ways to continuously improve your business. It also creates an opportunity to benchmark your company\u2019s overall performance. By having performance metrics and KPIs, you\u2019ll be able to see where your weak points are in your supply chain. You will then be able to correct those issues before they become major hurdles to your ongoing success.<\/p>\r\n\r\n\r\n\r\n<p>One of the keys to measuring your <strong>Performance in the Demand Planning Cycle<\/strong> is <strong>Forecast accuracy<\/strong>:<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><strong>Forecast accuracy<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>When you create a demand plan, there\u2019s usually a margin of error, which is what you use to figure out<strong> forecast accuracy<\/strong>. It\u2019s the deviation of actual demand from the forecasted one. By finding out the forecast accuracy, you can factor this into your future demand plans and make the relevant adjustments. One of the best ways to ensure forecast accuracy is leveraging automation technology. The functionality will automatically calculate the forecast errors. But in order to implement an automated approach you\u2019ll need to ensure your data and cross functional collaboration is in order in the system.<\/p>\r\n\r\n\r\n\r\n<p>Demand planning may seem like a big challenge to implement but it improves your business accuracy, saves time, and ensures greater revenue. Effective demand planning will assist your business to foresee challenges and react accordingly.<\/p>\r\n\r\n\r\n\r\n<p><strong>Want to know more about Demand Planning? Check out our other resources:<\/strong><\/p>\r\n\r\n\r\n\r\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/11\/why-is-demand-planning-important\" rel=\"noopener\"><strong>Why is Demand Planning important?<\/strong><\/a><\/p>\r\n\r\n\r\n\r\n<p><strong><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2023\/09\/roles-and-responsibilities-of-demand-planning\" rel=\"noopener\">Roles and responsibilities of Demand Planning<\/a><\/strong><\/p>\r\n\r\n\r\n\r\n<p><strong><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2023\/10\/demand-planning-key-features\" rel=\"noopener\">Demand Planning Key Features<\/a><\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>We\u2019ve discussed the benefits of gathering data and coming up with a strategy of collaboration when implementing a demand planning cycle. Now it\u2019s time to walk through the importance of Performance evaluation in the Demand Planning Cycle by setting metrics and KPIs. Demand planning strikes the balance between having sufficient stock levels to meet demand [&hellip;]<\/p>\n","protected":false},"author":143,"featured_media":10709,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2045],"tags":[1313,2517,2518,2519,176,2476,2520,2477,2521,92],"class_list":["post-10708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain-trends","tag-connected-supply-chain","tag-demand-and-supply","tag-demand-forecasting","tag-demand-management","tag-demand-planning","tag-digital-supply-chain-planning","tag-financial-planning","tag-forecast","tag-sales-forecasts","tag-supply-chain"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Performance in the Demand Planning Cycle - QAD Blog<\/title>\n<meta name=\"description\" content=\"In this article, discover how Forecast accuracy can help you set up metrics &amp; KPIs for Performance evaluation in the Demand Planning Cycle.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qad.com\/blog\/2021\/10\/performance-in-the-demand-planning-cycle\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Performance in the Demand Planning Cycle - QAD Blog\" \/>\n<meta property=\"og:description\" content=\"In this article, discover how Forecast accuracy can help you set up metrics &amp; KPIs for Performance evaluation in the Demand Planning Cycle.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.qad.com\/blog\/2021\/10\/performance-in-the-demand-planning-cycle\" \/>\n<meta property=\"og:site_name\" content=\"QAD Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/QADerp\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-12T23:17:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-01T23:20:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Performance-in-the-Demand-Planning-Cycle1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"653\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Arnaud Hedoux\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@QAD_Community\" \/>\n<meta name=\"twitter:site\" content=\"@QAD_Community\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Arnaud Hedoux\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/10\\\/performance-in-the-demand-planning-cycle#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/10\\\/performance-in-the-demand-planning-cycle\"},\"author\":{\"name\":\"Arnaud Hedoux\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/#\\\/schema\\\/person\\\/ccdf171c1d4bf7ceefb179129d901156\"},\"headline\":\"Performance in the Demand Planning Cycle\",\"datePublished\":\"2021-10-12T23:17:29+00:00\",\"dateModified\":\"2023-12-01T23:20:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/10\\\/performance-in-the-demand-planning-cycle\"},\"wordCount\":321,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/10\\\/performance-in-the-demand-planning-cycle#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/01\\\/Performance-in-the-Demand-Planning-Cycle1.jpg\",\"keywords\":[\"Connected supply chain\",\"Demand and Supply\",\"Demand Forecasting\",\"Demand Management\",\"demand planning\",\"Digital Supply Chain Planning\",\"Financial Planning\",\"Forecast\",\"Sales Forecasts\",\"supply chain\"],\"articleSection\":[\"Supply Chain\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/10\\\/performance-in-the-demand-planning-cycle#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/10\\\/performance-in-the-demand-planning-cycle\",\"url\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/10\\\/performance-in-the-demand-planning-cycle\",\"name\":\"Performance in the Demand Planning Cycle - 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