Collaborative Demand Planning is an approach to forecasting customer demand and managing procurement processes that leverages technology, data, and analytics. It serves as a bridge between customer demand, supplier delivery schedules, and the production process, enabling decision-makers to determine the right amount of material to buy and stock in real-time. By leveraging customer data and predictive analytics, Suppliers can use Collaborative Demand Planning to proactively plan for changes in customer demand, ensuring alignment with the supply chain. This allows for better inventory management, improved pricing strategy, and reduced lead times for faster fulfillment.