Essentials of Demand Forecasting and Planning
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Jonathon Karelse graduated from MIT Sloan School of Management with a degree in value chain management. Since 2012, he has worked as a partner for NorthFind Partners, which provides analytics, functional expertise, and change management services including demand forecasting and planning for global organizations. While demand planning is vital for business success, it is not an exact science, so businesses should determine possible forecasting issues and ensure any forecast implementation considers short and long-term impacts, current demand patterns, business constraints, and demand risks to identify the most profitable products.
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Essentials of Demand Forecasting and Planning
- 2. A graduate of the MIT Sloan School of Management, Jonathon Karelse received his degree in value chain management. Since 2012, Jonathon Karelse has served as partner of NorthFind Partners, which offers analytics, functional expertise, and enterprise change management for a number of global organizations, with services including demand forecasting and planning. Although demand planning is not an exact science, it is nonetheless vital for a business’ success. Before beginning the process, businesses should determine possible forecasting issues.
- 3. For example, the potential impact of the information gained on the forecast depends on whether it reflects short-term or long-term financial projections and whether current demand is sporadic or consistent. Balanced against a business’ constraints and demand risks, the forecast is not a budget or marketing tool. Instead, it is designed to help businesses identify which products are the most profitable and why. Finally, rather than focusing on the speed of the implementation process, businesses should ensure the forecast is implemented correctly and completely. Most importantly, demand forecast numbers should never be set in stone: as ironclad as they may seem, demand can fluctuate wildly depending on a variety of factors.