{"id":10773,"date":"2021-11-16T14:32:48","date_gmt":"2021-11-16T22:32:48","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=10773"},"modified":"2024-03-28T12:54:33","modified_gmt":"2024-03-28T19:54:33","slug":"why-is-demand-planning-important","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/11\/why-is-demand-planning-important","title":{"rendered":"Why is Demand Planning Important?"},"content":{"rendered":"<p><a href=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Why-is-Demand-Planning-important-696x4661-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10775\" src=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Why-is-Demand-Planning-important-696x4661-1.png\" alt=\"\" width=\"696\" height=\"466\" srcset=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Why-is-Demand-Planning-important-696x4661-1.png 696w, https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Why-is-Demand-Planning-important-696x4661-1-300x201.png 300w, https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Why-is-Demand-Planning-important-696x4661-1-627x420.png 627w\" sizes=\"auto, (max-width: 696px) 100vw, 696px\" \/><\/a><\/p>\r\n\r\n<p>In our article<a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/11\/what-is-demand-planning\" rel=\"noopener\"> What is Demand Planning<\/a>, we asked ourselves why is Demand Planning important? Prosperous businesses are able to plan for the peaks and valleys in their sales cycles. It enables them to manage current business volumes and plan for future growth.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>If your product isn\u2019t available and there is demand for it, you lose out on revenue. You could also lose the customer to a competitor. Or, you\u2019re sitting on unused inventory, which takes up space and production costs unnecessarily. With demand planning, business leaders can be proactive around market shifts and make decisions while also being responsive to your customer\u2019s needs. This is where implementation of a demand planning cycle will improve your business\u2019s ability to proactively meet market changes and beat out your competitors.<\/p>\r\n\r\n\r\n\r\n<p><strong>The key advantages are:<\/strong><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><strong>Improving product forecast accuracy with upstream supply planning<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>This process assists supply chain managers to accurately forecast product productions and expected revenue through the use of <strong>upstream supply planning<\/strong>. By upstream planning, you prevent out-of-stock, overstock, or idle stock situations, which can be detrimental to your business.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><strong>Increasing supply chain scheduling<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>Predicting and analyzing sales allows your business to plan production, warehousing, budgets, and shipping schedules. By doing this, you can plan shutdowns, updates, or reboots around busy periods as well as creating accurate sales targets.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><strong>Optimizing labour management<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>By demand planning, you\u2019re better equipped to plan for busy periods and have the staff on hand for those times. This way you avoid bottlenecks and are able to fulfill customer orders on time.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><strong>Creating efficient cash flow management with financial planning<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>It gives you insight into cash flow. so you don\u2019t get into situations where funds are tight, or worst of all, you can\u2019t pay your vendors and suppliers. Moreover, financial planning can help you predict any <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/bmw-double-share-e-car-production-dingolfing-plant-this-year-2021-07-02\/\" rel=\"noopener\">shortfalls in sales<\/a>, which means you can plan for those leaner times.<\/p>\r\n\r\n\r\n\r\n<p>The decision making process happens before the point of sale. That is why demand planning takes the risk out of daily operating decisions. A smooth-running supply chain makes or breaks a business. That is why it\u2019s crucial for the business to invest time and energy into optimizing their supply chain and demand planning processes.<\/p>\r\n\r\n\r\n\r\n<p><strong>Want to know more about that subject? Check out our other resources:<\/strong><\/p>\r\n\r\n\r\n\r\n<p><strong><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/11\/the-demand-planning-cycle\" rel=\"noopener\">The Demand Planning cycle<\/a><\/strong><\/p>\r\n\r\n\r\n\r\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2023\/09\/roles-and-responsibilities-of-demand-planning\" rel=\"noopener\"><strong>Roles and responsibilities of demand planning<\/strong><\/a><\/p>\r\n\r\n\r\n\r\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2023\/10\/demand-planning-key-features\" rel=\"noopener\"><strong>Demand Planning Key Features<\/strong><\/a><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>In our article What is Demand Planning, we asked ourselves why is Demand Planning important? Prosperous businesses are able to plan for the peaks and valleys in their sales cycles. It enables them to manage current business volumes and plan for future growth.\u00a0 If your product isn\u2019t available and there is demand for it, you [&hellip;]<\/p>\n","protected":false},"author":137,"featured_media":10775,"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-10773","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 v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why is Demand Planning Important? - QAD Blog<\/title>\n<meta name=\"description\" content=\"Demand planning enables businesses to plan for the peaks and valleys in their sales cycles; manage current volumes plan for future growth.\" \/>\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\/11\/why-is-demand-planning-important\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why is Demand Planning Important? - QAD Blog\" \/>\n<meta property=\"og:description\" content=\"Demand planning enables businesses to plan for the peaks and valleys in their sales cycles; manage current volumes plan for future growth.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.qad.com\/blog\/2021\/11\/why-is-demand-planning-important\" \/>\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=\"2021-11-16T22:32:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-28T19:54:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Why-is-Demand-Planning-important-696x4661-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"696\" \/>\n\t<meta property=\"og:image:height\" content=\"466\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"\u00c9ric Tissier\" \/>\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=\"\u00c9ric Tissier\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 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\\\/11\\\/why-is-demand-planning-important#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/11\\\/why-is-demand-planning-important\"},\"author\":{\"name\":\"\u00c9ric Tissier\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/#\\\/schema\\\/person\\\/6c79d3cb839f77d978f0cfc3b8e782ca\"},\"headline\":\"Why is Demand Planning Important?\",\"datePublished\":\"2021-11-16T22:32:48+00:00\",\"dateModified\":\"2024-03-28T19:54:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/11\\\/why-is-demand-planning-important\"},\"wordCount\":404,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/11\\\/why-is-demand-planning-important#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/01\\\/Why-is-Demand-Planning-important-696x4661-1.png\",\"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\\\/11\\\/why-is-demand-planning-important#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/11\\\/why-is-demand-planning-important\",\"url\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2021\\\/11\\\/why-is-demand-planning-important\",\"name\":\"Why is Demand Planning Important? 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