Difference Between Sales, Demand Planning And Sales And Demand Planning

Planning is referred as the establishment of objectives, and the formulation, evaluation and selection of the policies, strategies, tactics and action required to achieve them. While forecasting is defined as a prediction of future events and their quantification for planning purposes of the business. This main reason why business does planning and forecasting is it provides the business with valuable information that the business can use to make decisions about the future of the organization in many ways.

Meanwhile, Sales and Demand planning is defined as the use of analytics, optimization, text mining, and collaborative workflow in order to use market signals such as channel sales, customer orders, customer shipments, or market indicators

In this firm their demand planning provides forecast visibility throughout their entire global supply chain. Enhanced visibility provides insight into supply and demand fluctuations, and this visibility allows the firm to make rapid, fact-based decisions. As for an example, in case the demand from the customer is in a large volume and within a short period of time frame, this firm tend to have discussion with the customer or else will outsource the required inventory to make the orders of customers. Normally the items being outsourced will be oil, sugar and wheat flour as these items are controlled

Basically this will be done by the sales representative from Xtra One Food Industries. Their sales seems to be slow during the fruit season yet as overall their sales are still on control and goes as forecasted. The recent trend of this company is to supply the units in a slightly lower volume compare to years back. This is due to high rate of stock being returned by the customers. Thus, this causes loss to the firm as they have to bare the cost of the returned goods (frozen goods) which is now spoiled and can’t be sold besides the transportation cost as