How to Measure the Success and ROI of Demand Planning

When a manufacturer needs to measure the success and associated return on investment (ROI) of a demand planning process, the key is to identify the business process areas that need to be improved and then define the associated metrics that can then be measured and ultimately translated into ROI. While there are many process areas associated with demand planning, there are several key areas where manufacturers should focus that will derive the greatest process improvement for their demand planning. These focus areas require careful consideration before embarking on a project — a manufacturer must insure that it can adequately calculate value and ROI based on the economics of the portion of the process being improved.