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When talking about supply chain planning processes and supply chain management, the terms demand forecasting and demand planning are frequently mentioned. And even people in the know will often use these two terms interchangeably, using one when they mean the other and vice versa.
Although they are related, demand forecasting and demand planning are really two distinct concepts and cover different aspects of the supply chain planning process.
Below we explore the definition of demand forecasting vs demand planning, let’s first expand upon what each process entails, how they are intertwined, and how the approach to both concepts has changed in recent years. We will also explore how each continues to evolve as companies seek to effectively plan and mature their processes to thrive in today’s dynamic marketplace.
Understanding the differences between the two concepts can provide you with the context needed to optimize practices and take your supply chain planning processes to the next level.