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Demand Planning Manager job description

A Demand Planning Manager leads how a company forecasts demand for its products. They build and improve the demand forecast using statistics and inputs from sales and marketing, run the demand side of the sales and operations planning process, and keep forecast accuracy high. The role sits in supply chain planning and leads demand planners. A good one produces forecasts the business can trust, cuts both stock-outs and excess inventory, brings sales and marketing into the planning process, and keeps improving forecast accuracy month after month.

DetailFor this role
DepartmentSupply Chain
LevelManager
Reports toHead of Supply Chain
Direct reportsDemand Planner
Experience6 to 10 years in demand planning, with some team responsibility

Demand Planning Manager job description template

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Job title: Demand Planning Manager

Department: Supply Chain

Reports to: Head of Supply Chain

Location: [City], [office, branch or site]

About the role

A Demand Planning Manager leads how a company forecasts demand for its products. They build and improve the demand forecast using statistics and inputs from sales and marketing, run the demand side of the sales and operations planning process, and keep forecast accuracy high. The role sits in supply chain planning and leads demand planners. A good one produces forecasts the business can trust, cuts both stock-outs and excess inventory, brings sales and marketing into the planning process, and keeps improving forecast accuracy month after month.

Key responsibilities

  • Build and maintain the statistical demand forecast for products and markets.
  • Gather and challenge inputs from sales, marketing and customers to refine the forecast.
  • Lead the demand review in the sales and operations planning process each cycle.
  • Measure and improve forecast accuracy and bias across products and regions.
  • Plan for launches, promotions, seasonality and events in the forecast.
  • Lead and develop demand planners and set planning standards.
  • Analyse demand patterns, trends and forecast errors to improve models.
  • Align the demand plan with supply, inventory and financial plans.
  • Maintain the demand planning system, data and planning parameters.
  • Report forecast accuracy, risks and key assumptions to leadership each cycle.

Requirements

  • Engineering, statistics, commerce or a related degree, MBA an advantage
  • Experience in demand planning or forecasting
  • Strong analytical and planning skills
  • 6 to 10 years in demand planning, with some team responsibility

KRAs and KPIs for a Demand Planning Manager

Key result areas for the appraisal form, each with a KPI you can measure every month or quarter.

Key result areaHow to measure it
Forecast accuracyDemand forecast accuracy meets or beats the target across key products
Forecast biasForecast bias kept within the acceptable range, not consistently over or under
Planning processDemand review completed on schedule every planning cycle
Inventory impactBetter forecasts reduce stock-outs and excess inventory over time
CollaborationSales and marketing inputs gathered and reflected each cycle
Team developmentDemand planners developed and delivering to planning standards

Skills and tools

Demand forecastingStatistical forecastingSales and operations planningForecast accuracy analysisPlanning systemsStakeholder collaborationData analysisLeadershipCommunication

Tools used day to day: Demand planning software, ERP such as SAP, MS Excel, Statistical forecasting tools, Business intelligence dashboards.

Reporting line and career path

Head of Supply ChainDemand PlanningManagerDemand Planner
Moves up from: Demand Planner, Supply Chain Analyst
Next roles: Head of Supply Chain, Planning Head

Interview questions for a Demand Planning Manager

  1. How would you improve forecast accuracy for a product with erratic demand?
  2. How do you bring sales and marketing into the demand planning process?
  3. How do you handle a big promotion or launch in the forecast?
  4. How do you measure and reduce forecast bias?
  5. How do you balance statistical forecasts with human judgement?
  6. How do you run an effective demand review in the planning cycle?

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Frequently asked questions

What does a demand planning manager do?

A demand planning manager leads how a company forecasts demand for its products. They build and improve the forecast using statistics and inputs from sales and marketing, run the demand side of the sales and operations planning process, and keep forecast accuracy high. They lead demand planners and produce forecasts the business can trust.

Why is demand planning important in supply chain?

Demand planning drives the whole supply chain. A good forecast means the right stock in the right place, fewer stock-outs and less excess inventory tying up cash. A poor forecast causes shortages or overstock. Demand planning managers work to make the forecast accurate so supply, production and inventory plans can be built on it.

What skills does a demand planning manager need?

A demand planning manager needs statistical forecasting, forecast accuracy analysis and sales and operations planning skills, plus strong data analysis and planning system knowledge. Collaboration matters, since good forecasts blend statistics with sales and marketing inputs. Leadership and communication help them run the demand review and develop their planners.