ABSTRACT
Poor accuracy in demand planning can cause widespread disruption, poor customer service and increased costs to organizations. Conversely, organizations that develop high-quality demand plans will benefit from meeting customer needs swiftly and cost-effectively. This chapter reaffirms that a demand plan is an essential business tool for most organizations and outlines the attributes that underpin an effective and accurate demand planning capability. Leading practices in the areas of statistical forecasting, promotions management, causal event management and demand plan integration are proposed. If implemented, these simple yet comprehensive steps will increase the quality of an organization’s demand plan and help it to build a stronger, more accurate customer response capability.
