What is demand planning in SAP SCM-IBP-DM - Demand?

SAP Term: demand planning

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: The process of providing measurable estimates of future demand for your company's products.

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• Key Concepts: 
  Demand planning is a component of SAP's Supply Chain Management (SCM) suite of products. It is part of the Integrated Business Planning (IBP) suite and is used to forecast customer demand and plan for future supply needs. It helps organizations to accurately predict customer demand and plan for the necessary resources to meet that demand. 
  
  How to use it: 
  Demand planning can be used to create forecasts based on historical data, current trends, and other factors. It can also be used to create plans for inventory, production, and distribution. The system can be used to analyze customer demand patterns and identify areas where supply needs to be adjusted. Additionally, it can be used to monitor performance and identify areas where improvements can be made. 
  
  Tips & Tricks: 
  When using demand planning, it is important to ensure that the data being used is accurate and up-to-date. Additionally, it is important to regularly review the forecasts and plans created in order to ensure that they are still relevant and accurate. Finally, it is important to keep track of changes in customer demand patterns in order to ensure that the forecasts are always up-to-date. 
  
  Related Information: 
  Demand planning is closely related to other components of the SCM suite such as inventory management, production planning, and distribution planning. Additionally, it is related to other components of the IBP suite such as sales & operations planning (S&OP) and supply chain analytics.