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Demand Planning vs Supply Planning

Let’s face it, there are few businesses that are not globally involved today. In this environment, supply chain issues abound. It is important to understand where you can develop processes and strategies to keep you competitive in the marketplace.
That brings us to demand planning and supply planning.
Demand planning involves looking at circumstances and historical data. The raw demand is what people want regardless of how much or how little you have to sell. Both demand and constraints are part and parcel of how you conduct your business.
Some business owners and managers will opt for one type of demand forecasting over the other. It creates efficiencies for short term operations but allows for adjustments in long term projections.
Supply planning involves inventories, production, and logistics.
This has traditionally been a stumbling block. The idea is that data and input from both sides will develop into a program that both will agree to and follow for the benefit of the company. That doesn’t happen as much as you would think.
Generally, executives prepare budgets for each department and then separately use the allocated funds to operate their respective departments. This meant that each department would prepare its own spreadsheets that would need to be combined and integrated into the overall strategic corporate plan.
Another option is to find some really good software that will correlate data to help allocate resources and set up schedules to facilitate the smooth operation of your business.