Definition
Forecasting what customers will buy, in what quantities and when, so that purchasing and inventory decisions are based on expected demand rather than guesswork. Planners combine sales history, seasonality, promotions and market intelligence into a forecast that drives order quantities and timing. For import supply chains with long lead times, the forecast effectively has to look one full lead time ahead — get it wrong and you carry dead stock or run out.
Frequently asked questions
What is Demand Planning?
Forecasting what customers will buy, in what quantities and when, so that purchasing and inventory decisions are based on expected demand rather than guesswork. Planners combine sales history, seasonality, promotions and market intelligence into a forecast that drives order quantities and timing. For import supply chains with long lead times, the forecast effectively has to look one full lead time ahead — get it wrong and you carry dead stock or run out.
Which glossary terms are related to Demand Planning?
Demand Planning is a supply chain & warehousing term in the South African import/export industry. Related terms in the same area include 3PL (Third-Party Logistics), 4PL (Fourth-Party Logistics), ABC Analysis, Bonded Logistics, Bonded Warehouse (SOS/OS) — each has its own plain-English definition in the TradeCaravan glossary.