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Demand planning is one method used to establish reliable predictions of future needs for goods and services. Demand planning has applications in almost every business type. If you've ever considered your potential needs before ordering inventory or have scheduled more employees during peak operating hours, you've participated in informal demand planning.
Formal demand planning can offer remarkably accurate predictions for inventory demand, revenue, and workforce needs. Paying a consulting firm to offer detailed demand planning can help you increase the overall profitability of your business. If you are considering selling or obtaining financing for your business, a demand planning consultant may be retained to assess the future health of the business.
A demand planning consultant will carefully create a statistical forecast based on current data. For this reason, you should expect that your consultant will ask for past sales data, any planned future orders, and any continuing contracts. He will also evaluate your current customer base to determine consumer loyalty and the potential for future sales.
The consultant's forecast will often end with recommendations for your business, which may include suggested changes to better meet issues of supply and demand, ways to more effectively advertise, or suggestions for your overall business plan to meet currently unanticipated needs.
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