Why companies need demand planning

RP news wires, Noria Corporation

Over the last few years, we've found increasingly that companies are moving to things like lean manufacturing and other concepts that say it's unnecessary to be able to do forecasting. I was talking to a company the other day whose business is growing at 30 percent per year and they have no idea how to manage their business and the change that is going on as a result of all the increased demand capacity issues they're dealing with. Demand planning, or forecasting, is critical for a company because it needs to be able to understand where it's going financially, it needs to have a demand plan to be able to present to banks or to other financial institutions to help them understand what their plans are. And the third thing is, companies need to be able to purchase the raw materials or provide the materials needed at distribution centers, and all three of those are driven by starting with a demand plan.

Access this 5-minute, 45-second video by clicking on the link below.

About the Author