A company’s supply chain wouldn’t function without the work of a demand planner. They efficiently forecast product needs by analyzing a company’s sales, marketing, and analytical information. Their responsibilities include forecasting, data analysis, and arranging inventory flows. Read further to know more about the job description and salary of a demand planner. We also added some demand planner software that would make your job easier. Let’s dive in!
What Is Demand Planner?
A demand planner is responsible for monitoring and forecasting supply and demand within an organization. Their job is to analyze data and create a demand plan, which is a forecast report used to help stock up on the right amount of goods during high and low-demand periods. Supply chains can typically save a lot of money by implementing this planning technique. In order to better comprehend the driving forces lower down the supply chain, a demand planner frequently acquires expertise from or establishes partnerships with multiple organizations in their supply chain.
What Does a Demand Planner Do?
The following are things a demand planner does:
#1. Data Analysis
Data analysis is a crucial part of a demand planner’s job. Their goal in doing so is to gain insight into consumer behavior patterns throughout time, so they can better predict the future. They analyze numbers including consumer interest, sales volume, inventory turns, and manufacturing rates. In order to gain greater insight, demand planners can segment their study by product type or other categories. Spreadsheets, query languages like SQL, and other tools are common methods of accomplishing this.
#2. Generation of Reports
Planners for future demand typically submit their results to higher-ups in an organization. These reports include their findings, an explanation of how those findings were arrived at, and supporting images. Spreadsheets or data visualization software may be used to create these visualizations. These reports are regularly generated by demand planners to provide decision-makers with up-to-date information and insights. In order to make production changes more quickly, firms that use agile or similar approaches might benefit greatly from receiving frequent reports.
#3. Talking to People Both Upstream and Downstream
Regular communication between the teams upstream and downstream is common for demand planners. Downstream, in the context of logistics and supply chain management, refers to activities that take place after a company has completed production, such as marketing and sales. Typically, a demand planner’s duties include communicating expected demand levels to the sales team, retrieving insights from marketers, and comparing findings with analysts. The term “upstream” is used to describe activities that occur before production begins. The scope of this activity varies from one demand planner to the next, depending on their job description.
The role of the demand planner sometimes includes communicating production volumes to other departments. It could be helpful to run the numbers past key decision-makers beforehand. Collaboration with supply-management teams may be required. New and existing product inventory strategies might be formulated and discussed.
Job Description of a Demand Planner
The following is the job description for the demand planner:
- Create and use reliable demand forecasting models to anticipate the needs of your clientele.
- Control inventory levels and customer orders to guarantee satisfaction.
- Keep an eye on your customer satisfaction rates and make adjustments if necessary.
- Establish and maintain reliable connections with your most important clients.
- Partner with other departments to create supply chain strategies
- Keep an eye on critical success factors and report on them to guarantee client happiness.
- Create and deploy a system for keeping track of stock
- Help create innovative goods and services
Qualifications and Prerequisites of a Demand Planner
- Qualifications equivalent to a Bachelor’s degree in Business Administration, Supply Chain Management, or a Related Field
- Demand Planner with 5+ years of experience
- Capabilities in inventory management and supply chain administration
- Capability to think critically and solve problems
- Superb abilities in interacting with others, planning, and communicating
- competent in a demanding setting
- Expertise in Enterprise Resource Planning and the Microsoft Office Suite
Job Description Demand Planner Template
A skilled demand planner is needed to help us maintain timely, efficient, and cost-effective business operations. You will aid in all aspects of demand planning, from projecting the need for products in the future to analyzing stock levels and helping to design forecasting models.
Professionalism, in-depth analytical capabilities, and strong communication abilities are required for this position. The ideal applicant also has a firm grasp of more complex mathematical concepts and forecasting practices.
Skills of a Demand Planner
The success you have as a demand planner depends on your skills and experience. In some cases, a candidate’s level of experience can take the place of a degree while applying for a position. Planners for future demand employ both analytical and interpersonal abilities. If your career goals include working as a demand planner, consider honing the following skills:
- Mixed-methods quantitative and qualitative studies
- The analysis of numbers and statistics
- Numeracy
- Ability to use Excel and SQL
- Software for visualizing data
- Competence in both oral and written expression
- Prediction and danger evaluation
- Competence in leading and managing others
- Effective scheduling and preparation
- Diligence and focus on every last detail
- Thinking critically and solving problems
How to Become a Demand Planner
The following are the steps to take to become a demand planner:
#1. Complete your A levels
Due to the wide range of expertise required by demand planners, formal education beyond high school is sometimes preferred, if not required. In order to enter a university, prospective demand planners need to achieve a certain grade point average (GPA). They may have varying requirements for the number of AP and GCSE courses you need to graduate. Two or three A levels, for instance, might be needed for admission to a good institution. In order to pass, you may need a grade of at least C (4 or above) in some classes. Think of majoring in a field that uses numbers and calculations, such as economics, accounting, computer science, or information technology.
#2. Get a Degree
A bachelor’s degree in an appropriate field is one option for gaining the knowledge and experience to work as a demand planner. There may not even be any schools that offer a degree specifically in demand planning, so it’s important to go outside the box when choosing a major. Mathematics, physics, and engineering courses are also recommended.
Pay special attention to programs that feature coursework in statistical analysis using technologies like SQL and spreadsheets. Supply chain internships are a valuable addition to any degree program. It usually takes between three and four years of full-time study to earn a bachelor’s degree, though this varies by major. Think about getting a degree that covers the gamut from supply chain management and data analytics to logistics.
#3. Get Postgraduate Education
A company’s output and overall success are two factors that demand planners frequently have significant influence over. Gaining additional knowledge and expertise in a certain field are two benefits of pursuing postgraduate study. If you already have a degree or background in one area but want to learn more about the entire field of demand planning, a master’s degree is a good option.
To learn more about manufacturing and supply networks, for instance, a math major with an interest in business could pursue a master’s degree in supply chain management or a related field. Demand planning often requires strong leadership skills, which can be developed with a Master of Business Administration (MBA). Particularly helpful are MBA concentrations in business management, operations management, and business analytics.
#4. Acquire Real-World Experience
Due to the specialized nature of demand planning, few entry-level candidates qualify for the post. When looking for ways to get experience, you have a few choices. Since demand planners frequently collaborate with a wide range of upstream and downstream groups, it can be useful to have expertise in more than one field. The fields of logistics, supply chain management, business analytics, market research, and operations management are all good places to start looking for a job. Jobs in transportation planning and storage can be helpful as well since they share many responsibilities.
Supply chain managers and analysts in market research are two of the most senior professions to think about. The role of assistant demand planner may be available in various businesses. This is a fantastic opportunity to gain valuable experience in the field. When you’re ready to and have acquired the necessary qualifications, apply for demand planner positions, you can do so here. Different companies will have different expectations of their employees, thus keeping up with the job market is essential.
Demand Planner Software
In order to better serve their customers in the future, businesses might use the forecasting solutions offered by demand planner software. In order to better manage inventory and production in the future, businesses are turning to demand planning technologies. These tools let companies to better meet their consumers’ demands by anticipating their wants and desires in the future. They’ll be better able to anticipate customer needs if they keep adequate supplies of the right kinds and quantities on hand at all times. Supply chain management solutions frequently include demand planner software, which relies largely on predictive analytics.
The following are some of the demand planner software you can go for:
#1. Netstock
Cloud-based ERP (enterprise resource planning) software Netstock connects with industry leaders like Netsuite, SAP Business One, Microsoft Dynamics, and Acumatica ERP. Use the information stored in your ERP to pull up analytics and adapt rapidly to shifts in the supply chain. Your company can cut its time to ROI in half by using Netstock.
#2. Avercast
Avercast is demand planning software that uses in-depth forecasting algorithms to assist in the precise planning of inventory levels to minimize both shortages and surpluses. Screens, features, and functionalities are tailored to your company’s unique specifications. The ABC analysis, Exception management, Safety stock optimization, and Service Level Optimization tools are only some of the supplementary resources provided by Avercast.
#3. Logility
Inventory-heavy businesses can benefit from Logility because it allows them to better adapt to shifting market conditions, lower their carrying costs, and introduce more competitive pricing and service options. With the help of advanced analytics, AI, and machine learning, the Logility Digital Supply Chain Platform can improve operational performance, automate planning, reduce cycle times, and much more.
The Benefits of a Demand planner software
The following are the benefits of demand planner software:
#1. Enhanced Strategy for Marketing and Operations
By focusing on the supply chain, the sales and operations planning process helps firms develop strategies to retain existing clients and attract new ones. Using this method, a company’s various divisions (such as sales, marketing, manufacturing, and more) can pool their knowledge to formulate a comprehensive strategy for meeting customer needs. The optimal flow of items through your supply chain is ensured by coordinated efforts between these divisions based on sales projections.
#2. Inventory Optimization Allows for More Precise Stock Counts
Optimal inventory management is always having just enough of a product on hand to meet customer needs. Optimization software for stocks can streamline analytical processes across the board.
The gaps between anticipated sales and actual sales are what an optimal inventory optimization solution will use to determine stock levels. The consequences of an inaccurate prediction for a business include stockpiles of unsold inventory and, even worse, missed deadlines for fulfilling customer orders.
#3. Optimize Labor Management
To complement inventory optimization, demand planner software can be applied to the planning of labor demand. This kind of demand planning will result in an accurate estimate of the available workforce, which in turn affects both costs and the quality of service supplied to clients. The ultimate objective of labor management using demand planning software is to increase staff engagement and productivity in order to boost company outcomes.
Demand Planner Salary
The salary of a demand planner In the United States is $78,882. However, the salary of a demand planner can be affected by location, education, and qualification.
What Qualifications Do You Need to Be a Demand Planner?
- Bachelor’s degree in business, supply chain management, or related field.
- 5+ years of experience as a Demand Planner.
- Knowledge of supply chain management and inventory control.
- Strong analytical and problem-solving skills.
- Excellent communication, interpersonal, and organizational skills.
Is Demand Planning a Good Career?
Graduates with a keen analytical mind and excellent communication skills can expect to earn competitive wages and advance rapidly in their careers. The need for a skilled forecast analyst and a demand planner has increased as businesses have begun to use Big Data and engage in predictive analytics.
What Are the 4 Crucial Elements of Demand Planning?
- Planning demand.
- Communicating demand.
- Influencing demand.
- Prioritizing demand.
Is the job of a Demand Planner Difficult?
The job of a demand planner can be challenging sometimes but you just need to stay focused and determined to stick to your job.
Final Thoughts
In order to estimate how much production will be needed to meet demand, businesses rely on the expertise of a demand planner. The more precise a demand planner is, the more productive their organization will be. This is especially helpful for businesses that deal with perishable items. You can also get a demand planner for your company, today!
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