{"id":6782,"date":"2018-04-26T14:39:49","date_gmt":"2018-04-26T18:39:49","guid":{"rendered":"https:\/\/demand-planning.com\/?p=6782"},"modified":"2018-05-14T12:41:08","modified_gmt":"2018-05-14T16:41:08","slug":"managing-demand-planners","status":"publish","type":"post","link":"https:\/\/demand-planning.com\/2018\/04\/26\/managing-demand-planners\/","title":{"rendered":"Ask Dr. Jain: How Can I Gauge Demand Planners’ Performance?"},"content":{"rendered":"

Question<\/h2>\n

Dear Dr. Jain,<\/p>\n

I am am keen to know the best practices for 3 points :<\/p>\n

1.<\/strong> The KRA’s (Key Result Areas) for Demand Planners regarding: areas of responsibilities, weighting % for each KRA, measurement criteria\/KPIs , goals and targets, and action plans to give expected results of these KRAs.<\/p>\n

2.\u00a0<\/strong>ROI of a Demand Planner in terms of bottom line profit.<\/p>\n

3.<\/strong>\u00a0 Specific roles and responsibilities of Demand Planners as opposed to Supply Planners and other roles.<\/p>\n

Regards,<\/strong><\/p>\n

Supply Chain Planning Manager at a multinational chemical\u00a0company\u00a0<\/b><\/p>\n

Answer<\/h2>\n

1.<\/strong><\/p>\n

a) The key responsibilities of a Demand Planner is to manage forecasts, which are often prepared through a consensus process; and manage demand, which is often done through the Sales & Operations Planning (S&OP) \u00a0process.<\/p>\n

b) Both activities\u2014running consensus and S&OP processes\u2014 are equally important, and should thus be weighed equally.<\/p>\n

c) KPIs used the most are amount of inventory held, customer service, margin, total revenue, market share, etc.<\/p>\n

d) Goals\/targets vary from industry to industry, company to company. It may be expressed in terms of total profit, total revenue, forecast accuracy, inventory level, customer service, etc.<\/p>\n

e) Manage correctly both the consensus and S&OP processes.<\/p>\n

2.\u00a0<\/b>It is difficult to measure precisely ROI resulting from a Demand Planner. One can get some idea by looking at the improvement in total sales and profit, inventory level, customer service, etc.<\/p>\n

3.\u00a0<\/strong>Demand Planners won\u2019t be able to do their job well unless:<\/p>\n

    \n
  • All functions work together, not in a silo, and do what is good for the company, and not for a specific function.<\/li>\n
  • Senior management fully supports the role and the S&OP process.<\/li>\n
  • There is complete transparency where everything is on a radar screen so everyone knows what is going on.<\/li>\n
  • Metrics are in place to measure the performance.<\/li>\n<\/ul>\n

    I hope this helps.<\/p>\n

    Dr. Chaman Jain,<\/strong><\/p>\n

    St. John\u2019s University<\/strong><\/p>\n

     <\/p>\n<\/span>","protected":false},"excerpt":{"rendered":"

    Question Dear Dr. Jain, I am am keen to know the best practices for 3 points : 1. The KRA’s (Key Result Areas) for Demand Planners regarding: areas of responsibilities, weighting % for each KRA, measurement criteria\/KPIs , goals and targets, and action plans to give expected results of these KRAs. 2.\u00a0ROI of a Demand […]<\/p>\n","protected":false},"author":4,"featured_media":6786,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,381],"tags":[408,352,415,416],"class_list":{"0":"post-6782","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-forecasting-and-planning","8":"category-sop-process","9":"tag-ask-dr-jain","10":"tag-kpis","11":"tag-kras","12":"tag-measure-performance"},"_links":{"self":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/6782"}],"collection":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/comments?post=6782"}],"version-history":[{"count":0,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/6782\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/media\/6786"}],"wp:attachment":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/media?parent=6782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/categories?post=6782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/tags?post=6782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}