Leaders Opinion

Demand Planning in Supply Chain: Lessons from the Ground

April 30, 2025 3 min read
Shrikant Rathi
Shrikant Rathi
Orbit Wires & Cables, Head SCM - Logistics

Why Demand Planning Matters More Than Ever 

Earlier, we used to plan based on historical trends and seasonal demand. But now, those patterns often don’t hold up. Unexpected demand, changing customer preferences, and local geographical issue supply disruptions have made the job more challenging. 
 
During my job experience, I’ve seen that demand planning leads to two major issues — either too much stock lying idle in the warehouse or urgent stock outs causing delays. Both situations hurt the business. And let’s be honest, they also create unnecessary stress for everyone involved & add the cost to the company. 

Challenges We All Face 

Many companies still struggle with: 
- Sales and operations not being on the same platform. 
- Forecasts being made without real ground-level & Scheme running in market insights. 
- Too much depend on Excel and manual tracking. 
- Communication gaps between procurement, production, Sales and logistics teams. 
 
In my experience, the key challenge is not always technology. It's coordination. Even the best systems won’t help if people aren’t aligned. 

What’s Worked Well for Us 

We’ve started taking a more collaborative approach to demand planning. Some of the practical steps that helped us improve: 

  • Regular meetings with sales teams – These give us better insights into actual market movement, beyond just numbers. 
  • Rolling forecasts – Instead of Quarterlyβ€―planning, we update plans every month based on current sales and trends. 
  • Realistic safety stocks – We don’t blindly follow one formula. Stock levels are decided based on region-wise consumption and lead times and if any scheme runs in the market to promote any product.
  • Simple dashboards – Using ERP and MIS reports, we track our forecasts vs actuals, stock aging, and slow movers in a very simple, visible way. 

β€―A Fresh Thought – Demand Planning as a Customer Experience Tool 

One idea I believe will gain more traction is treating demand planning not just as an operational tool, but as a driver of customer experience. When demand is met on time, without delays or excesses, it builds trust. A consistent supply chain improves brand reliability. It’s no longer about just stocking shelves — it’s about keeping promises. 
 
In the future, demand planners may work closer with customer service and marketing teams to align planning with promotions, trends, and feedback. 

Where Demand Planning is heading 

In the future, I believe demand planning will become even more critical. Companies will need to: 
- Use real-time market data and use the new Technology like AI etc.. (not just past sales) 
- Be flexible with multiple scenarios and backup plans 
- Train their teams not just in systems but in thinking – connecting sales, service, and internal department. 
 
And honestly, the companies that treat demand planning as a strategic activity, not just a support function, will be ahead of the curve. 

Final Thoughts 

For me, demand planning isn’t just a technical exercise. It’s about understanding the business pulse, working with cross-functional teams, and staying alert to the market. Technology helps, but it’s teamwork and discipline that make it work. 
 
I’m still learning every day. And I believe that as supply chain professionals, our role in shaping demand planning will only grow in the coming years. 


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