The Purpose Of Customer Demand Planning

By Angela Moore


When it comes to forecasting the interest in soon to be released products, there are several aspects. In one case, customer demand planning or CPD enables sales and marketing teams to develop forecasts based on planning as related to revenue, inventory, production and service processes.

CDP is also an important and integral part of the marketing process when it comes to the management of value chains. For, it can often be easier for managers to plan the deployment of employees and other resources necessary to take the product from the planning phase to the marketplace. As such, by using CDP, managers can use such data in a number of different ways.

While most planning systems use a top down approach when it comes to marketing and product release, CDP uses a bottom up approach. In most cases, there are only a few risks related to the number of planners required and those related to the number of products to be released.

If desiring to use software in the process, several companies have released different versions which can assist in the process. In addition, SAP APO applications are also being used to test the added value of this bottom up approach. In the retailer model which works directly with manufacturers, collaborative partnerships became more common in the 1990s. For, market to consumer systems cut out the need for a middle man and can often save a great deal of money when it comes to the planning and delivery process.

Challenges and complexities have been a problem for years with regards to planning and forecasting delivery models. However, those related to manufacturers and distributors are vastly different than those related to demand management formats. For example, demographics often play a major role with regards to areas of the world which may show interest in a product.

CPD includes customer service, demand creation inventory, technology, sourcing, pricing optimization, travel optimization and channel management. For, if a company can not plan for the results of a product release, most will not be successful in the long run. Whereas, those whom can predict and prepare for the number of products to be released to the marketplace based on a demand forecast, then most often success will follow.

Like in other areas of business, new technologies are assisting in forecast and predictive analytics in this area. For, this type of planning is changing the way different companies perform and operate before becoming competitive in the industry. In addition, with the evolution of these solutions, companies are now discovering new methods for cutting cost and increasing efficiency.

CPD being of assistance to companies with regards to productivity is not an accident. For, to be successful, companies have to be able to plan and forecast when it comes to product availability and desire so that delivery will align with public demand upon the initial release. As such, by using CDP, many companies are now experiencing more success than ever before in history.




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