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If you’ve ever been stuck with a warehouse full of excess stock or had to explain to a customer why their order isn’t available (despite it saying so online), you’ll also then understand why demand planning is critical.
At its core, demand planning is about striking the right balance. You want enough stock to meet customer needs without having shelves packed with products you can’t move.
The good news? It’s absolutely possible. The even better news? If you’re using the right tools, it becomes a whole lot easier.
Let’s take a closer look at what demand planning involves, how it fits into your wider supply chain, and why ERP systems are fast becoming a game changer in this space.
What is demand planning, exactly?
In simple terms, demand planning is the process of forecasting how much of a product your customers are likely to need, and when. It’s not just guesswork. It’s a structured approach that brings together data from sales, operations, marketing, and finance to help you plan for the future.
It means looking at real-time sales orders, production requirements, customer behaviour, seasonality, and market trends. Done well, it helps you avoid overstocking, prevent stockouts, and free up cash that would otherwise be tied up in slow-moving inventory.
It’s not just about predicting what’s coming, it’s about making smarter, faster decisions based on facts rather than assumptions.
Why demand planning matters for supply chain success
Your supply chain is only as strong as your weakest link. Without demand planning, even the most sophisticated systems can break down. Poor planning means missed deadlines, unnecessary expenses, and frustrated customers. Effective planning, on the other hand, helps you:
Avoid costly overstocking or understocking
Improve customer satisfaction by delivering on time
Reduce waste and carrying costs
Make better decisions around purchasing, staffing, and production
Without demand planning, your supply chain decisions are just educated guesses at best.
So where does ERP come in?
ERP (Enterprise Resource Planning) systems are built to unify your business processes across finance, inventory, customer management, and more. When it comes to demand planning, they offer some serious advantages.
Instead of juggling spreadsheets or jumping between systems, an ERP brings everything into one place. This gives your team a single source of truth and allows them to:
See real-time inventory levels
Automate reordering based on sales patterns
Forecast more accurately with built-in modelling tools
Track supplier lead times and production cycles
Monitor customer demand and adjust plans on the fly
Modern platforms like MYOB’s ERP software take this even further by allowing you to connect demand planning with CRM, project management, and distribution tools in one ecosystem.
That means less guesswork and more insight, all while saving time and reducing the risk of error.
Demand planning vs demand forecasting: what’s the difference?
While the two terms are often used interchangeably, they’re not quite the same. Forecasting is a subset of demand planning. It’s about using historical data and trends to predict future demand.
Demand planning zooms out. It includes forecasting, but also brings in strategic thinking, market research, and input from across the business to build a more holistic plan.
For example, a supplier of concrete panels might use forecasting to estimate demand based on last year’s project pipeline. Demand planning takes it further by factoring in upcoming government infrastructure spend, project delays or fast-tracks, competitor contract wins, supply chain constraints, and seasonal labour shortages.
Best practices for getting demand planning right
1. Start with realistic goals
Set clear, achievable goals that your team can work towards. Rather than trying to improve your whole product line at once, focus on one item or category and track progress month by month.
2. Bring in the right people
Demand planning is not a solo task. Get input from marketing, sales, operations, and finance. Each team brings different insights that strengthen the plan.
3. Use the right data (and lots of it)
Look beyond just internal sales reports. Market research, customer feedback, supplier trends, and even economic forecasts can all add value. The more reliable data you have, the better your planning will be.
4. Review and adjust regularly
Plans should never be static. Consumer preferences shift. Supply chains change. Tech evolves. Make sure your planning process allows for regular reviews and adjustments.
5. Choose the right tools
This is where software can really lift the load. Manual spreadsheets might work at a small scale, but as your business grows, you’ll need something more robust. Platforms like MYOB give you real-time visibility across your stock, sales, and purchasing, and can automate a lot of the heavy lifting.
What to look for in demand planning software
Choosing a platform isn’t just about features. It’s about finding a system that fits your business now and supports your growth in the future. Look for:
Real-time data and dashboards
Easy integration with your current systems
Forecasting tools and analytics
User-friendly design for broad team adoption
Mobile access so teams can view and update on the go
Flexibility to scale as your needs change
Make sure you’re not paying for features you’ll never use, but also don’t limit your future options by immediately going for the cheapest solution.
The bottom line
In today’s economy, planning isn’t just a nice-to-have. It’s essential.
Customers expect fast, accurate service. Margins are tight. Stock mistakes are expensive. And staying competitive means being able to adapt quickly.
By bringing demand planning into your supply chain strategy and supporting it with the right ERP system, you can run leaner, smarter, and more confidently.
With MYOB, you don’t just get software. You get tools that connect your entire business and help you make better decisions based on real-time data. Whether you’re managing stock, projects, or customers, with MYOB Acumatica you’ll have everything you need to plan with confidence. Get started with MYOB today.