Integrated Demand Planning Definition

Integrated demand planning (IDP) is the process of forecasting customer demand across all channels and developing a coordinated plan to meet that demand. IDP encompasses both short-term operational planning and long-term strategic planning, and brings together data from multiple sources to give a complete picture of customer demand.

The goal of IDP is to align supply with demand, ensuring that customers can always get the products they want, when they want them. This can help businesses to avoid stockouts and overstocks, which can lead to lost sales and frustrated customers. IDP can also help businesses to optimize their inventory levels, reducing the amount of money tied up in stock while still meeting customer demand.

To be effective, IDP needs to take into account both internal factors (such as production capacity and lead times) and external factors (such as seasonality and market trends). It must also account for the fact that customer demand is often not constant, but may vary depending on price, promotions, and other factors. By taking all of these factors into consideration, businesses can develop a realistic plan for meeting customer demand.