skip to Main Content

Do You Know These Financial Metrics?

Demand Planning  

When it comes down to the bottom line, your decisions have financial impacts. The Institute of Business Forecasting & Planning said, “The profit and loss statement often gets the most attention, since it shows the revenue, the cost of goods sold, and the period costs and profit of the company.” Demand and supply planners should know gross profit so they can be familiar with the profit structure and profit realized in sales. Finally, EBITDA is, “earnings before interest, tax, depreciation, and amortization” It’s important to look at financial metrics when planning for the future. Forecasting and planning financially is instrumental in continuing a business’s success in the future and knowing these terms to plan and collaborate is beneficial. How are you using finance metrics?

4 Financial Metrics Every Demand & Supply Planner Should Know

Demand and supply planners are supporting decision-making efforts that have financial ramifications for the company. The company has many stakeholders who have a financial interest in the company with whom the management must communicate and interact. So, finance is an important skill and language f

Read the article
Related Articles

Thinking through digital supply chain

Going digital in supply chain takes knowledge and careful planning.  As Gartner said, "While any organization can throw technology at planning, it makes more sense to pause a minute and think about what type of digital technology is appropriate." Think [...]

How accurate are your forecasts and how accurate do they need to be?

A forecast doesn’t have to be correct to have value. In fact, the Institute of Business Forecasting & Planning said, “We need to continually remind people that a forecast is not going to be 100% accurate, and that it does [...]

How do you choose your aggregation levels?

When it comes to aggregation you could traditionally choose top-down or bottom-up. That is not necessarily the case anymore. The Institute of Business Forecasting & Planning said, “Middle-out forecasting is another option, starting somewhere in the middle of a hierarchy; [...]

Forecast vs. Demand Plan – do you know the difference?

Do you know the difference between a forecast vs. demand plan? A forecast is a prediction of demand based on numbers seen in the past. Demand plan starts with the forecast but then takes other things into consideration like distribution, [...]

Seven Advantages of Integrated Demand and Supply Planning

A championship football team reaches such heights because of teamwork, practice, and a clear strategy.  Both offensively and defensively, team members are drilled over and over to work together and know the plan so that on game day, everyone is [...]

What makes a great demand planner?

What characteristics does a great demand planner have? First of all, they can solve problems. Being creative and objective is a vital part of their job! However, they can also communicate their problem solving methods very well. It’s important for [...]

Making your demand planning the best it can be

If your demand planning isn’t going as well as you hoped, there are a few things you can do! First, make sure you are really committed to demand planning and you are not just doing it out of perceived obligation. [...]

The laws you should really know about demand planning

How confident are you in your demand planning knowledge? Institute of Business Forecasting and Planning says there are a few laws you should follow. First, there are a few times that your planning gets less precise - when you get [...]

Demand Planning: What Is It and Why Do You Need It?

Estimating future demand is one of the most valuable activities your organization can undertake. A demand plan’s impact is felt throughout the business, from sales and marketing to manufacturing and distribution. When done correctly, demand planning can put you in [...]

Demand Management: Linking the Market to Operations Management

All businesses, whether they be commercial, profit-seeking companies or not-for-profit altruistic enterprises, manage demand. It is so common, that we might not even be aware that we are doing it. We do it in our everyday lives, as we manage [...]
Subscribe to our Blog
Back To Top