Dealing with demand volatility has been an ongoing challenge made more severe by the COVID-19 pandemic. While most businesses have realized the value that accurate demand planning brings, they continue to struggle with transitioning demand planning from an administrative activity to a strategic one.
Poor demand planning can result in:
- Challenges in capitalizing on sales opportunities
- Overstocking on finished product leading to margins being squeezed
- Continuous fire-fighting to maintain supplier relationships
- Costs related to expediting goods