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ICRON will be a Silver Exhibitor at the upcoming Gartner Supply Chain Executive Conference 2019 on 17th-19th June 2019 in Barcelona, Spain. Click here to find out more.

Management Paper: 5 Key Capabilities Required For Successful Demand Planning

The future, as everyone knows, is impossible to predict. And it is precisely this fact that makes demand planning so challenging for manufacturing companies. Future demand can’t be accurately forecasted based on historical data – as demand is always somewhat uncertain and subject to sudden shifts due to constantly changing market conditions and unforeseen factors and constraints. Indeed, effective demand planning is extremely challenging, but it is a crucial capability for manufacturers. Being able to generate accurate forecasts and create demand plans that are dynamically integrated to supply plans is absolutely critical. Inaccurate demand forecasts can lead to disaster – resulting in poor inventory management and resource utilization, lower profits and levels of customer service and satisfaction, and skyrocketing costs.

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