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.

From Issue: The Forecaster’s Predicament: Communicating Uncertainty Effectively
(Fall 2021)

Understanding the Impact of Demand Planning On Financial Performance