Demand Planning is the process within a business that has the responsibility to plan and influence the Demand in Volume and Value of the Products \/ Services of the business in a time horizon. Oliver Wight 2020 <\/p>\n\n
Demand planning is more than a forecast; it is a vital component to validate medium and long-term plans. The main objective of a Demand Planning process is to detect the Gap vs. the business’s revenue objectives to generate corrective action plans.<\/strong> <\/p>\n\n The demand plan was born as a necessity to plan the supply in an S&OP process, but today it is clear that it must go further because it is the basis for validating the business plan, the financial plan, and the supply plan.<\/p>\n\n It is vital to understand that the supply plan is the responsibility of the Marketing \u2013 Commercial areas. Medium-Short term Commercial, Medium-Long term Marketing. It is a mistake that the Demand Plan is the responsibility of the supply area. <\/p>\n\n Demand is commonly defined as \u201cthe products or services that customers want and when they want them, at a price they are willing to pay\u201d; We generally do not consider our ability to satisfy it, so demand is known as \u201cunrestricted.\u201d<\/p>\n\n The amount of actual demand that can be satisfied is the restricted demand; therefore, restricted demand \u2264 demand. According to Philip Kotler<\/strong>, demand management involves influencing<\/strong> the level, timing, and composition of demand.<\/p>\n\n In the following 22-minute video, you will find more information about demand planning!<\/p>\n\n