Demand Planner: Definition, Responsibilities & Skills
Two quite familiar concepts are the market and demand.
In order for businesses to achieve the right balance between sufficient inventory levels and consumer demand, proper planning is required.
Demand planning offers both profit and customer satisfaction. This is why the profession of a demand planner is particularly crucial.
In this guide, we will explore:
- What is a demand planner?
- What skills does a demand planner possess?
- Their responsibilities and role within a company.
- Where they can work.
Let's start with a fundamental definition.
What is a Demand Planner?
A demand planner is a professional responsible for forecasting and managing demand for the products or services offered by a company or an organization.
The primary concern of this role is to ensure the appropriate availability of products to meet consumer demand.
This, in turn, minimizes excess inventory and reduces associated costs.
We understand that the profession of a demand planner is highly significant in various industries and contributes to the effective management of the supply chain.
Next, let's examine the key duties of a demand planner.
Key Duties of a Demand Planner
Some of the primary duties of a demand planner include:
A demand planner uses historical sales data and various market trends to make predictions about how future demand for a company's products and services will evolve.
This enables the company to meet consumer needs efficiently.
One of a demand planner's main responsibilities is to monitor and manage inventory levels to ensure that products are consistently available to consumers.
A demand planner needs to systematically evaluate the accuracy of their forecasts.
For this purpose, they develop and use Key Performance Indicators (KPIs) to assess the effectiveness of demand planning and forecasting.
When market conditions change, consumer behavior evolves, or other factors affect demand, demand planners must remain vigilant to adjust their forecasts.
Now, let's discuss the essential skills required for a successful career in this role.
Key Skills Required for a Demand Planner
To excel in this demanding role, a demand planner should possess the following skills:
Skill #1: Collaboration
Demand planners work closely with various departments within a company, including marketing, production, and sales teams, to gather and interpret complex data and develop accurate forecasts.
They need to work effectively as a team and resolve issues that may arise, such as in the supply chain.
Skill #2: Data Analysis
Demand planners rely on statistical and data analytics tools to evaluate historical data, identify patterns and trends, and make informed predictions.
Advanced analytical skills are vital for interpreting data and making demand forecasts.
Skill #3: Continuous Learning
Demand planners need to have knowledge of the supply chain, stay updated on market trends, and monitor changes in consumer purchasing habits to make informed predictions.
Where Can a Demand Planner Work?
A demand planner can work in a wide range of industries and sectors where there is a need for demand forecasting and management of products or services.
They can work in manufacturing companies producing a broad spectrum of products, from consumer goods to industrial equipment.
Demand planners are also essential in e-commerce businesses and FMCG (Fast-Moving Consumer Goods) companies like Nestle and Pepsi.
Moreover, a demand planner can choose to work in pharmaceutical companies, managing the supply chain for medications and medical equipment, logistics companies, or the automotive industry, among others.
As for compensation, according to Glassdoor, the estimated total remuneration for a demand planner is around €2,150 per month in Greece, with an average monthly salary of 1,650€.
We have seen what a demand planner does, their skills, duties, and where they can work.
Data analysis and forecasting are essential skills for this role.
If you are intrigued and would like to learn more about the fascinating world of data analytics, follow us and we will keep you updated with more educational articles!