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“Demand forecasting” as well as “demand planning” is often mentioned speaking of Sales and Operations Planning processes and supply chain management. Are there any differences between demand forecasting and demand planning?
From the business context’s perspective, the process of demand planners predict the products’ demand can be called as demand forecasting to some extent. What is more, demand forecasting is beneficial for some parts of supply chain. If the demand forecasting team is managed in an effective way, it may have an influence on operations of supply chain.
The practice to generate forecasts while predicting the future need of the products can be called as demand planning. Demand planning include more than demand forecasting. Generating the forecast is an important element while other duties as well as responsibilities are the essential elements as well. As the planners of demand, they can arrange individuals in the process of supply chain in order that they may increase the consumer satisfaction and overall performance.
Demand forecasting is the result of demand planning to some extent.
Demand forecasting as well as Demand planning can often be used interchangeably related to business environment.
Demand planning is a process that has multiple steps related to supply chain management to some extent.