Understanding the Impact of Demand Planning On Financial Performance

Demand planning and supply chain management are essential platforms from which key business activities are launched throughout the company and must serve both the long-term business plans of the company and core financial metrics. This article reveals how Demand Planners can see their decision making through a financial lens which helps the business balance customer service and cost and cash efficiency. I reveal key financial questions to be asked and financial variables and relationships to be considered in order to balance these competing priorities. I also discuss the importance of return on assets and net income as key ways to understand how planning decisions are impacting your company’s performance.