Jason Breault
Are you interested in a challenging career that will put you in an influential position at work and provide significant career growth potential?
Then, working in demand planning might be an excellent option for you.
Demand planners are crucial in forecasting future demand, optimizing inventory, and improving overall business efficiency. The field provides opportunities for cross-functional collaboration, exposure to diverse business areas, and the chance to significantly impact a company’s profitability. In addition, it plays a critical role in consumer satisfaction. Demand planning is a growing field offering career opportunities, limitless learning potential, and the opportunity to work in many industries.
Individuals who want to become demand planners must be interested in data tracking and analysis, understanding consumer behavior, and anticipating market trends. That’s because their ultimate purpose is to help businesses meet consumer demand efficiently.
If you choose a demand planning career, be prepared to develop a specific skill set, gain relevant experience, and continuously adapt to the ever-evolving world of supply chain and demand planning, where change is only accelerating with the introduction of AI.
This guide explains everything you must know to become a successful demand planning professional.
Education Requirements for Demand Planners
The first step in becoming a demand planner is to meet the necessary educational requirements.
A bachelor’s degree in supply chain management, business, statistics, economics, or a related field is typically required. Plan to take courses in data analysis, supply chain principles, and inventory management. Beyond that, consider pursuing a master’s degree or certifications like those offered by the Institute of Business Forecasting, which can help you stand out.
Analytical and Technical Skills Demand Planners Need
Demand planning is all about data analysis and forecasting. Develop your analytical skills by learning to interpret complex data sets and identify trends. Gain expertise with statistical software and tools. Start with Excel and then build up to more advanced ones such as SAS and R. Demonstrate your systems proficiency by mastering enterprise resource planning (ERP) systems and demand planning software. These are crucial for developing accurate demand forecasts and effective supply chain strategies.
Soft Skills for Demand Planners
One of the career-enhancing opportunities that demand planning offers is the opportunity to work with so many cross-functional partners. Many demand planners cite this as why they were offered advancement opportunities quicker than their peers.
Because demand planners must handle many types of tasks and work with a wide array of stakeholders, they will be more successful if they develop specific soft skills, including:
- Communication: Demand planners should be able to clearly communicate complex concepts to different stakeholders, including people in sales, marketing, finance, operations, and company leadership. This includes not just explaining the what behind forecasts but also the why.
- Collaboration: Demand planning often requires collaboration across many departments and functions. Getting everyone in a room to agree is a skill in and of itself. It’s easier to do this with solid collaborative capabilities, supporting partnering with other teams, information sharing, and working together to achieve common goals.
- Adaptability: Many factors, including market changes and unexpected events, can impact planning. Demand planners must be flexible and adaptable enough to adjust forecasts and plans in real-time.
- Problem-solving: Supply chains are becoming ever more complex. Consumers seem to change their minds more than ever. As a result, planners will frequently encounter challenges and uncertainties during their workday. Solid problem-resolution skills are necessary to identify and resolve potential issues, such as forecasting mistakes, data errors, or supply chain disruptions.
- Continuous improvement: Demand planning changes rapidly, even more so since the introduction of artificial intelligence. Planners must stay up-to-date on the latest trends and best practices in the field.
- Leadership: Leadership doesn’t only refer to managing other people; it comes in many forms. Demand planners must inspire other teams and stakeholders to achieve common goals, which requires the ability to both listen and influence others to drive a consensus among the team.
- Attention to detail: In demand planning, little things make a big difference. Attention to detail is key for success. Identifying small issues can save a company millions of dollars in inventory reductions and increased efficiency.
- Organization: Demand planning is all about juggling many plates at once. People with differing priorities will pull you in many directions. Planners must be capable of prioritizing their work and staying organized and structured in their approach to data analysis, forecasting, planning, and working with others.
- Time management: Planning is time-bound. That’s why demand planners must master time management and set priorities.
Experience Needed for Demand Planning Roles
Hands-on experience is incredibly valuable for understanding the complexities of demand planning and handling challenging situations.
Start by looking for internships or entry-level inventory management, procurement, or logistics positions. Larger organizations offer rotational programs for new grads that can provide excellent exposure to the various parts of the supply chain. This will help you learn the factors that influence demand and how supply chains operate. Aim to participate in cross-functional projects to find out how different departments influence supply and demand planning.
Build a Professional Network
No demand planning professional achieves success on their own.
Start by seeking out internal mentors. Look for people in roles you may aspire to one day and ask for their guidance.
Both internally and externally, networking and building connections are essential.
Join professional organizations like the Institute of Business Forecasting to connect with peers and industry experts and continue your education. Attend conferences, workshops, seminars, boot camps, town halls, and other events to stay on top of industry trends and best practices. (These are also great places to seek out external mentors.)
Networking can help you broaden your industry knowledge and open doors to career opportunities. People love to help others; you just have to ask.
Show Off Your Demand Planning Work
As you gain demand planning work experience, develop a portfolio that showcases your projects and achievements. (Consider building a website you can link to from your LinkedIn profile or share with prospective employers.) Include case studies, forecasts, testimonials, and strategies. Document how your work resulted in business improvements and efficiencies and helped prevent supply issues.
This is also a great time to start giving back. It is said that there is no better way to master a subject than by figuring out how to teach it. Write an article for a publication like the Journal of Business Forecasting. Present what you have learned or a case study at a conference.
Keep Learning and Stay Informed
Demand planning is dynamic, with methodologies and technologies constantly emerging. Introducing artificial intelligence into the practice has only accelerated the pace of change.
Too many people sit back and expect others to establish their ongoing development plan, only to be frustrated when they realize they are being left behind. Take ownership of your career development. Stay informed about the latest trends in supply chain management, data analytics, and demand planning. Engage in continuous learning through online courses, webinars, and publications like those offered by IBF. Participate in local industry networking meetings. Keeping your skills and knowledge current is critical for advancing your demand planning career.
Taking these steps is the traditional way to achieve success in demand planning.
Other Paths To Get Into Demand Planning
Not everyone follows the traditional path into a career in demand planning. Think of all of the inputs that go into creating a solid forecast. With the right analytical skills, cross-functional partners who understand what goes into a demand consensus process can become great demand planners. Some alternatives include:
Move into Demand Planning from Customer Service or Sales
People who work in customer service or sales positions have valuable insights about consumer behavior and market trends that can benefit demand planning.
Moving from these areas into demand planning is a relatively common career trajectory. People who do this have a solid understanding of product demand and customer needs. To become effective demand planners, they must develop analytical skills and familiarity with demand forecasting tools.
Shift from Analytical Roles into Demand Planning
Professionals with analytical experience in industries like finance, marketing, or healthcare often find these skills transferable to demand planning roles. Because they can interpret data and identify patterns, they usually become valuable members of demand planning teams. Once they learn supply chain dynamics, inventory management, and effective soft skills, they can leverage their analytical expertise in a new way, making demand planning richer through cross-industry insights.
Transfer from Inventory or Logistics Positions
People already working within or adjacent to the supply chain, such as those in inventory or logistics jobs, have a basic understanding of the flow of goods and the issues impacting it. In the end, their lives have been made easier or harder by, among other things, a good forecast. Moving up to a demand planning position is often a positive career move.
Before making the shift, candidates must expand their skills to include demand forecasting while also developing a broader perspective of the supply chain. Training like that offered by IBF will be critical to ramping up quickly.
The alternative paths people can take into demand planning positions demonstrate how expansive the field is. Building an effective demand planning team requires many people with different skill sets. There is no single way to become a demand planner, and based on our extensive experience with the industry, every career and path into it is unique. That’s why IBF offers so many resources to help practitioners and hopefuls achieve success.
How Long Does It Take to Become a Demand Planner?
The timeframe for becoming a demand planner varies from a few years to several, depending on your educational background and work experience. With a bachelor’s degree in supply chain management or a related business field, you might expect to spend about three years gaining relevant experience in inventory management, analytics, operations, or other associated areas before moving into demand planning.
For people who come from unrelated disciplines or do not have a college degree, it may take more time to develop the skills and industry knowledge needed to qualify for demand planner positions. Seeking opportunities to learn about market trends, forecasting, and inventory management can speed the process.
Becoming a Demand Planner: The Final Word
While there is no single path to becoming a demand planning professional, there are a few things people need to succeed in the field.
- Expertise in data analysis. Demand planners must be solid at interpreting data. It’s the only way to forecast demand accurately. They must constantly improve their analytical skills and master specialized forecasting software. Understanding historical trends and predictive modeling is critical for achieving success.
- Understanding of supply chain dynamics. It’s critical to know how supply chains function. Understanding how the inputs into the forecast impact its accuracy, and how your forecast accuracy impacts others downstream, is the true demonstration of your understanding of the demand planner role. Learn about the complete process, from procurement to distribution, especially the effect that demand planning can have on each stage.
- Communication and negotiation skills. No demand planner works in a vacuum. It requires building solid relationships with many stakeholders and ongoing coordination with internal teams, suppliers, and manufacturers. Every team is managing to different metrics. Many speak the language of their function (i.e., dollars vs. units). Learn how to communicate and negotiate effectively to ensure operational efficiency and cost-effectiveness.
- Focus on leanness and efficiency. Become familiar with lean and agile management practices, which are how companies operate to improve efficiency and reduce waste.
- Master project management. Supply and demand planning is project-driven. That is why understanding the fundamentals of project management is beneficial. Learn how to plan, execute, and monitor projects while limiting risk. This will help you manage initiatives successfully.
- Be adaptable. Demand planners must be able to adapt to change and solve problems. Pay attention to what’s going on in the world around you. Practice resilience by exposing yourself to different demand planning scenarios, such as market shifts or supply disruptions. This adaptability will help you feel confident that you can handle any situation, even in challenging times.
- Find a mentor. Partnering with a trusted and experienced professional is a great way to gain fresh insights and perspectives. Stay on the lookout for mentorship opportunities, and don’t be bashful about asking for support, either from senior demand planning leaders or others in the organization. The worst they can say is no, but most will want to help or will be willing to refer you to a colleague better suited to supporting your goals.
These tips will equip aspiring demand planners with the skills and knowledge to transition successfully into a new position and help people already in the field advance their careers.
Get a jump start by taking advantage of all the resources available through IBF, including our training and networking opportunities, journal, podcasts, and more.
And for students, and others just starting out, IBF offers free events including webinars and regional events. You can also volunteer to help out at IBF conferences and events and receive free admission. Contact IBF to find out more.