Demand planning is vital in supply chain management, with different types of jobs available depending on a company’s needs. These jobs fall into three categories: forecasting only, forecasting and inventory management, and multifaceted roles. Skills required include analytical, organizational, and communication skills, as well as the ability to adapt to new technology.
Demand planning is a crucial aspect of supply chain management. Most companies involved in manufacturing and selling goods, wholesale or retail, have jobs available as a demand planner. Different companies have different needs depending on the products they handle, and therefore the types of demand planner jobs vary widely. Still, these jobs fall into three basic categories: positions that involve forecasting only, positions that involve forecasting and inventory management, and positions that involve forecasting, inventory management, and a host of other responsibilities.
Basically, forecasting means using statistical analysis of a company’s supply chain data to predict how much of a given product will be needed and when that product should be delivered. This can be a very complex and time-consuming process, depending on many factors; including the number of products sold; the number of companies, retailers or end-users waiting for the products; and the variety and seasonality of products. The ability to forecast accurately can prevent losses caused by overstocking or product shortages and therefore can have a huge financial impact on a company. Consequently, some demand planner jobs focus only on the forecasting aspects of supply chain management.
Other types of demand planner tasks require forecasting and inventory control. In addition to forecasting the quantity of product required, the demand planner would also be responsible for managing current and future inventory. This can involve storage, shipping, and managing excess inventory. This is generally a hands-on position that involves some degree of warehouse supervision and management.
In addition to forecasting and inventory control, many types of demand planner jobs are multifaceted and include other related responsibilities. For example, a demand planner might be responsible for negotiating the carrier rate or actually purchasing products and product components. If a company’s demand planning is done by a team rather than an individual, the job may also involve managing and administering the team. The specific responsibilities required for these multifaceted jobs vary greatly from company to company. In addition, many larger companies have varying levels of demand planning, including supervisory, managerial, and directorships, which may have a different set of roles and responsibilities.
Regardless of the specific type of demand planner job an individual obtains, certain skills are usually required. For example, demand planning positions of all types require strong analytical skills, a solid understanding of the supply chain process and the ability to interpret data. Good organizational and communication skills are also almost always required. The technology related to demand planning is always changing and improving; therefore, regardless of the type of demand planning work, an individual must be willing to adapt and learn new methods to perform the job functions.
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