For the most part, they aren't born, but are bred within organizations that take a multidisciplinary view of supply chain operations, and train their employees accordingly. Let's see if we can't pick apart the elements that make up a good demand planner, based on the experience of several companies that were represented on a panel at a recent conference of the Institute of Business Forecasting & Planning (IBF) in Scottsdale, Ariz.
Patrick Bower, senior director of corporate planning and customer service with Combe Inc., agreed that the ideal demand or supply planner will have some kind of background in applied mathematics or economics. But strong leadership abilities are called for as well. "One of the needs for a demand planner is to be able to influence people," Bower said. "The ability to lead by collaboration is an important skill."
How one defines such an intangible is a highly subjective exercise. As Bower sees it, "you look for people who have done things that require some sort of complexity and analysis over time."
Fine - but analytical prowess doesn't necessarily translate into an ability to get along with others. Jonathon P. Karelse, president of Syncro Distribution Inc., has had plenty of success with people who possessed strong financial or economics backgrounds. "But 80 percent of the terminations I've done had nothing to do with a person who was good at math. That's a pretty easy thing to vet."
It's not just a question of being able to crunch numbers, "but to make those numbers tangible for the rest of the organization that does not speak the same language," Karelse said. With all of the competing pressures and conflicting interests among business functions, the biggest "soft skill" required of a demand planner might be a thick skin.
Nestle USA found that it takes more than one individual to perform the job. Director of demand and supply planning Geoffrey Fisher said a statistician can handle 90 percent of the mathematical requirements, but that position is really one of decision support. For true demand planning, the company needs someone who can function on the same level as marketing and sales - who can actually lead the whole sales and operations planning (S&OP) effort. Ideally, that's a person with "great facilitation skills - who knows how to talk, and has a spine."
When it came to working with skilled planners, Nestle had been grappling with a retention problem. "Demand planning is a thankless job," said Fisher. "This is the person who owns the number, then we shoot them every week."
One way to break the cycle is to allow employees to do "tours of duty" within the company - swapping, for example, the tasks of planning demand and supply. They might even venture into finance for a time. The program "gives people different scenery," said Fisher, "so that they don't feel like they're in that one peg forever."
It's up to companies to launch programs that can help would-be demand planners become great leaders. Karelse is all too aware of the pain that can result from the lack of such an effort. When he headed up the consumer products division of Yokohama Tire (Canada) (http://www.yokohama.ca/language_select.php), he was "one of those demand planners who believed only in the truth of mathematics. Anyone who tried to convince me of something off my plan [was] a fool. I rubbed a lot of people the wrong way."
Fortunately, Karelse had the total support of his boss and the company president, allowing him to develop his skills in the right direction. "If you don't have top-level engagement," he said, "you are going to burn [your statisticians] out."
Last year, Randy Wilp, leader of global commercial forecasting with Merck & Co., Inc., brought in an organizational-behavior coach to help transform the company's planners from being "completely analytical-minded to customer-minded."
In the beginning, "they were all about the numbers." At the same time, the coach had to be schooled in the mathematical aspects of planning. "It took three months for my staff to feel more comfortable with the organizational part, and the organizational guy to understand," Wilp said. "But the transformation has been remarkable. It was well worth the year of investment."
Bower has sent his planners out to a center for creative leadership - a kind of managerial "outward-bound" program, supplemented by Myers-Briggs testing of personality types. Graduates come back with an improved set of soft skills, he said.
Combe's tour-of-duty exercise involved placing planners within a small sub-segment of the business - say, a demand plan for Canada. In rotating through such discrete tasks, they emerged with a better sense of what demand planners experience in their everyday jobs.
"It's always the supply planners saying, "I can execute against any plan you give me,'" said Bower. "They don't understand what the other side goes through."
The actual job of demand planning can vary from company to company. In Karelse's experience, it takes someone above both disciplines to reconcile the demand and supply plans. Bower's planners, by contrast, run the consensus process and participate in new-product development meetings. So the emerging theme appears similar to what I argued in my previous post about so-called one-number forecasting: the lack of an easy answer that applies to all companies.
As Bower put it: "I don't think there's a magic formula for developing demand planners." Still, the basic ingredients - good statistical, analytical and communications skills, along with a firm commitment to training - are there for all to see.
Comment on This Article
Keywords: supply chain, supply chain management, inventory management, inventory control, logistics management, supply chain planning, demand planning, supply chain forecasting, retail supply chain, sourcing solutions, supply chain risk management
Friday, 10-04-15 16:39
Very interesting article. Thanks. This is an area of interest for me as well.
Friday, 22-11-13 11:57
Over the last decade, I've seen an interesting shift in the workforce away from Forecast Analysts to Demand Planners. At the time, it seemed to be a result of more organizations getting lean, reducing head count, and turning combining the role of Inventory Planner and Forecast Analyst. That's where the "Demand Planner" came from, and really was a role for a jack-of-all-trades. All of the criteria above are absolutely necessary for the role of Demand Planner. However, rather than trying to find that perfect fit, I would say that perhaps more important than the individual, would be Demand Planning as a department for your organization. This department would have people of varying strengths/weaknesses, but combined to be a powerhouse of data, information, insight, and execution. You can keep your Forecast Analyst (the math geek) and your Market Analyst (the customer advocate) and your Supply Chain Analyst (the supplier interface) as your individual contributors, while having a Manager or Director of Demand Planning possessing enough knowledge of everything previously stated, and the know-how to navigate the executive branch. If you have 100% confidence in each of the individual contributors because you're using each of them for their particular strengths, then the sum of the parts should create a well versed, statistically backed, operationally driven juggernaut of a Demand Planning department.
Saturday, 31-08-13 04:56
Excellent article. Cant agree more. What this article clearly suggests is that while many demand planners may not be 'born', it is equally important to consistently develop demand planning skills sets within planners, most of which be probably not easily identifiable.
Thursday, 29-08-13 01:59
Very nice article β¦.
Demand Planning is one of the key areas in all organisations. Thereβs no magic formula for developing demand planners. We need more skilled and professional demand planner with knowledge of Economics, Marketing & Sales and statistical knowledge. Very difficult to get good DP with all these skill.
Wednesday, 12-06-13 19:22
Great article. I'd add that a group of people with just the right mix of skills is Industrial Engineers, who were not mentioned in the piece. At Rensselaer Polytechnic Institute (RPI), our IE students take required courses in supply chain, statistics, optimization and information systems; they add in relevant electives and cross-disciplinary/client-owned senior design projects. They also understand engineering economics (ROI, anyone?) and tend to be less "cubicle oriented" than many other engineering disciplines. IE is one of the lesser known engineering disciplines, but it is excellent training for demand planning.
Monday, 29-04-13 13:04
This is a very interesting read. It made me realize the difficulty in nature of a demand planner. The analytical skills required for a demand planner go way beyond mathematics and reading numbers. Rather, he/she must be able to communicate with several different organizations across the firm to see what is needed. The planner must be able to understand if these demands are feasible and accumulate the data in a presentable manner for management and suppliers. Perhaps every smaller organization in a firm should have a demand planner, to make this role less complicated. Of course, this job is different in each company. However, hiring additional demand planners could help the company be more accurate with predictions and allow for a better strategy with long-term goals.