Demand Planning: How Does it Work?

Automated demand planning through a simple, user-friendly interface, powered by advanced statistical forecasting with optional AI comparison. Configure key planning inputs, select the most relevant historical periods, and align forecasts with inventory targets and Open-to-Buy plans. The result is a faster, more flexible planning process designed to support confident, data-driven decisions

Steps:

Start by naming your demand plan so it can be saved and easily revisited later. Then select the number of months to forecast and your target weeks of supply (WOS)

Next, select the historical months to use in the forecast calculation. Planners can include the most relevant periods and exclude months affected by unusual events, stockouts, promotions, or other conditions that may distort typical demand

Select the divisions, categories, and vendors to include in the demand plan. Leave all selections blank to include all active stocked products. Dropshipping items are excluded by default but can be included by enabling the appropriate option.

 

Use “Smart Builds” to generate monthly build rates aligned your Open-to-Buy plan, then adjust the rates as needed

As the final step, you may optionally add an AI forecast as a separate comparison column. The statistical forecast remains the primary forecast, allowing planners to compare both results before proceeding

Once the demand plan setup is complete, the system automatically processes the selected inputs and generates the plan. The completed demand plan is typically ready for review within approximately 10 minutes

Plan is Ready to Review:

Use the "Action" filter to view the system-generated product status: show only products that require reordering, include products flagged for weeks-of-supply monitoring, or display all products for a complete assortment view. Use additional options to include relevant sales-history data in the plan. Separate summaries can also display recommended reorder quantities and investment by division, category, vendor, and other planning dimensions.

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