Emotional Responses to Demand Planning:

Emotional Responses to Demand Planning:

Demand forecasting – always considered to be a fact-based review of actual sales performance, vs budget, vs forecast. Can be a somewhat emotional affair. Hopefully a Netflix series.. Keeping up with the forecasters. 

With animated stakeholders in the room. 

So, does how you feel, change the way that you forecast. Similar to the emotional biases involved with investing.

I’d argue, that this also happens in planning:

#1 Fear – I’m out of stock today, let’s pump that forecast. 

I’m overstocked today, let’s drop that forecast

#2 Uncertainty – I’m launching this today, and I don’t know how it’s going to perform. Let’s not forecast 

#3 Bullying – I have a sales/finance team yelling at me. Let’s change the forecast because they overpower me.

#4 Gambling – Who cares about the forecast. Bet it on 12 units per month and play roulette

#5 Science – The computer says that’s the forecast. And I’m using that don’t argue with my excel spreadsheet.

Historical – We have always forecasted this each and every month.

#6 perhaps a combination of the above and then onto the next line..

These responses aren’t necessarily bad or grossly incorrect. – but do you document your assumptions, and how you were feeling at the time? #ibp #demandplanning #supplychain

Initially shared as a post on LinkedIN, and transcribed into an article for easy reference. Feel free to comment, like or otherwise engage in the discussion.

Written by Chris Mousley