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8 www.bus-ex.com SEPTEMBER 09
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Strategic management Demand planning 4
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itch nd the The final article in this four-part series explains how integration and alignment combine to make demand planning your lifeline in the recession By Susan Storch, Principal, Oliver Wight Americas
emand planning, often underutilized in the best of times as a means of improving cash flow and profitability, may become your company’s lifeline in a recession. This four-part series discusses demand planning best practices in relation to surviving, and even thriving, in the downturn and emerging in the best possible financial health. Part 1 explored the high benefit potential in cash and profit of demand planning and laid out the three fundamental moves you have to take to achieve it. Part 2 explained the first move, quickly designing best practices into your demand planning process. Part 3 addressed the second move, equipping people to run at best practice process capability. The final article in this series examines the third fundamental move, integration and alignment. If you have been following this series, you know that the demand planning lifeline has been thrown, a strong line snaking out, guided by capable hands. There was the pitch and now there has to be the catch. Winning with demand planning Remember that the demand plan we have been talking about contains the business’s revenue projections based on planned marketing and selling activities to achieve them. Marketing and sales reached consensus on a plan, and now marketing and sales have to execute the plan — “the pitch and the catch.” This is the third fundamental move: integrating and aligning the upgraded demand planning process with other commercial execution processes and also with product development, supply chain, and finance. Winning with demand planning takes the engagement and synchronization of the entire business in the catch. Given a portfolio of desirable products and services
cat
8 www.bus-ex.com SEPTEMBER 09
pi an
Strategic management Demand planning 4
tch
itch nd the The final article in this four-part series explains how integration and alignment combine to make demand planning your lifeline in the recession By Susan Storch, Principal, Oliver Wight Americas
emand planning, often underutilized in the best of times as a means of improving cash flow and profitability, may become your company’s lifeline in a recession. This four-part series discusses demand planning best practices in relation to surviving, and even thriving, in the downturn and emerging in the best possible financial health. Part 1 explored the high benefit potential in cash and profit of demand planning and laid out the three fundamental moves you have to take to achieve it. Part 2 explained the first move, quickly designing best practices into your demand planning process. Part 3 addressed the second move, equipping people to run at best practice process capability. The final article in this series examines the third fundamental move, integration and alignment. If you have been following this series, you know that the demand planning lifeline has been thrown, a strong line snaking out, guided by capable hands. There was the pitch and now there has to be the catch. Winning with demand planning Remember that the demand plan we have been talking about contains the business’s revenue projections based on planned marketing and selling activities to achieve them. Marketing and sales reached consensus on a plan, and now marketing and sales have to execute the plan — “the pitch and the catch.” This is the third fundamental move: integrating and aligning the upgraded demand planning process with other commercial execution processes and also with product development, supply chain, and finance. Winning with demand planning takes the engagement and synchronization of the entire business in the catch. Given a portfolio of desirable products and services