DBM Systems Ltd. reposted this
In S&OP, achieving balance between supply and demand is key to operational success. Yet, this balance isn’t just about making educated guesses, it's about setting actionable, accountable plans. That’s why we use a demand plan instead of a demand forecast. A forecast is what we expect might happen, a plan is something we actively want to happen. The demand plan holds teams accountable across three essential components: Booking Plan: Incoming orders. Unconstrained Shipment Plan: Shipments the market demands. Backlog Plan: Open orders impacting lead times. When we break down demand into distinct streams, we’re not just organizing data, we’re unlocking new insights. This approach allows us to address each stream’s unique challenges and needs, leading to smarter decision making. By planning around these demand patterns, we can better anticipate shifts, prioritize resources, and drive greater alignment across teams. Want to elevate your approach to demand planning? Click the link in the comments to explore the full article: “Demand Planning in S&OP: Ensuring Accuracy and Accountability.”