Today’s market is all about one thing- Customer Satisfaction- what are the customer needs, type of products and services, the quality, design and specifications of the product and so on and forth. The business organizations who understand and serve the customer demand perfectly are the ones who make it to the top in the world market.
But as easy as it may sound, a proper demand planning is not every firm’s cup of tea. Proper analysis needs be to done at every stage which plays a very crucial role in the development of the company.
How to conduct a proper Demand Planning?
Demand Planning or demand forecasting is one of such activities that every organization, whether large scale or small scale, has to commence on a dialy basis. The planning process is the work of the top level management in the organization which requires adequate amount of time and attention.
Demand planning comes under sales forecasting and operational planning which assists in creating an integrated plan for the business activities. It helps the business to meet the ongrowing demands of the customers profitably. Utmost attention needs to be payed while laying down the effective planning strategies to capture most of the market and grow simultaneously.
Key factors of Demand Planning:
- Unique way of Planning- In order to differentiate your company and its products or services from others, a unique way of planning process need to be adapted by the firm.
- Flexibility in decision making- There should always be scope for changes and modifications in your business plan strategies. A flexible environment will induce the management to come forth with different and amazing ideas to increase the performance of the firm.
- Helps in search of business opportunities- The market is full of opportunities, it just depends who takes benefit from it. For a firm to seek an opportunity is like a boon as it will result in enhancement of its performance.
- Trained Sales force and staff- The performance of a company is measured by the quality of its employees. Employees can either make or break an enterprise. Training and development of the staff needs to be done and they should be educated about their roles in the company as well as the quality of work expected from them.
- Screening of the plan- The management should review their plans at every stage in order to point out the errors, if any. This will save the time of the firm and the demands of the market can be satisfied.
Demand and Supply are directly related to each other and are considered to be a long-term business activity. Demand Planning can result in growth of production and sales which will increase the profit earning percentage of the business firm. Moreover, the company will be in a better position to understand the future demands of the prospective customers and the supply for the goods and services can be done without any difficulty or problem.