Framework for Effective Demand Planning in SCM PPT


This PPT slide, part of the 83-slide Supply Chain Strategy and Performance Management PowerPoint presentation, titled "What is Demand Planning?" outlines the critical components of demand planning within supply chain management. It is structured into 3 main sections: Inputs, Create Plan, and Outputs, providing a clear framework for understanding the demand planning process.

The Inputs section lists essential data sources that feed into the planning process. This includes consumption data, historical data, collaborative input from customers, market intelligence, and pricing information. Each of these elements plays a vital role in shaping an accurate demand forecast, highlighting the importance of comprehensive data collection and analysis.

Moving to the Create Plan section, the slide details the methodologies employed to generate a demand plan. Key activities include statistical forecasting, setting NSO objectives, and enriching the demand plan with collaborative insights. This section emphasizes the necessity of integrating various data points and stakeholder inputs to create a robust and actionable plan.

Finally, the Outputs section presents the tangible results of the demand planning process. The "One Number Plan" serves as a consolidated forecast that aligns various departments within the organization. Additionally, it provides a deeper understanding of demand drivers and usage, facilitating strategic, tactical, and operational planning. The mention of sales input for operational use underscores the practical application of the demand plan in driving business decisions.

This slide effectively communicates the interconnectedness of inputs, planning activities, and outputs, offering a comprehensive overview of demand planning's role in optimizing supply chain operations. It serves as a valuable reference for organizations looking to enhance their demand planning capabilities.



This slide is part of the Supply Chain Strategy and Performance Management PowerPoint presentation.

This toolkit is created by trained McKinsey, BCG, and Porsche Consulting consultants and is the same used by MBB, Big 4, and Fortune 100 companies when performing Supply Chain Initiatives.

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