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2A(3.2.2) Demand Planning
Strategic Sourcing Framework

Description
Demand planning is a multi-step operational supply chain management (SCM) process used to create reliable forecasts. 
Understanding the specification and volume requirements from the business ensures that needs can be appropriately met and that resources are not being wasted.

Objective:
Demand planning is in essence a forward looking instrument to obtain a clear understanding of your organisation’s specification and volume 
requirements to ensure that business needs and service delivery goals can be met and that resources are not being wasted.
Output:
  • A complete demand forecast

WHAT IS DEMAND PLANNING?
Effective demand planning can guide users to improve the accuracy of revenue forecasts, align inventory levels with peaks and troughs in demand, 
and enhance profitability for a given channel or product.
Demand planning is in essence a culmination of understanding the relevant legislation that governs demand management in the 
Public Sector and the needs analysis to support the strategic objectives of the organization.  
It leads to the development, management and implementation of a procurement plan.  
It further assists with compilation of specifications and/or terms of reference and evaluation criteria.
Understanding the specification and volume requirements from the business ensures that needs can be appropriately met and that resources are not being wasted.
Demand planning is not about reducing volumes, but rather ensuring that volumes are appropriate for meeting the needs and objectives of the organisation.  
Demand planning is done to support the strategic objective of the organisation. 
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