Demand Planning image

Planning in silos has proven to produce plans companies have little or no confidence in. The best demand plans include input from all stakeholders, including the people closest to the customer in sales, and marketing as well as those closest to suppliers, in operations and finance. Together, these teams can balance market and customer needs against supply chain capabilities and risk.

The Kinaxis® RapidResponse® Demand Planning application helps demand planners create an unconstrained consensus demand forecast that combines the statistical forecast with multiple functional forecast perspectives and events from sales, marketing and finance teams. Inputs are weighted and adjusted as part of a highly collaborative process, and all orchestrated with a single planning system.

RapidResponse’s concurrent planning capabilities provide the ability to combine demand planning with strategic capacity and supply management to continuously monitor and adjust the portions of the demand plan that present variance or risk.


RapidResponse applications are based on best-practices and standard process flows established by our years of successful deployments at a multitude of world-leading manufacturers. The out-of-the-box Demand Planning application enables quick implementations and also acts as an advanced starting point for a tailored solution that meets your company’s unique needs.


Among the greatest advantages of any given RapidResponse application is the ability to leverage it in conjunction with other applications as part of a broader, integrated solution. Depending on the need, significant added benefits can be achieved by using the Demand Planning application alongside one or more related applications to ensure synchronization across interrelated planning processes.

Companies that use the Demand Planning application will have also subscribed to the S&OP application, and can also achieve broader value by using it with the Aggregate Supply Planning application.

Demand Planning journey - Kinaxis

Demand Planning image


  • Improved forecast accuracy and reduced demand process cycle time
  • Seamless collaboration across functions (sales, marketing, finance, demand planning)
  • Ability to integrate demand functions with other supply chain functions, including product lifecycle management
  • Better coordination to maximize revenue opportunities and proactively resolve demand and supply risks to minimize costs
  • Improved visibility, communication and execution of events planned by sales, marketing or finance

Functional Capablilities

  • Input forecast from various constituents (sales, marketing, finance, statistical forecast) and use disaggregation functionality to drive demand into saleable SKUs
  • Compare actuals, current demand plan, annual plan, aggregate supply plan, prior approved demand plan and the previous year’s demand plan in a time-phased graphical view
  • Monitor the forecast accuracy for all forecasts
  • Detect and “cleanse” historical data to remove data errors, outliers and causals
  • Define statistical forecast generation parameters according to the different statistical models available
  • Define NPI/EOL statistical forecast generation variables
  • Generate statistical forecast scenarios
  • Edit combination of ratios of various forecast categories
  • Adjust or override the calculated demand plan for specific forecast items in specific date ranges
  • Publish consensus demand plan to aggregate supply planning
  • Monitor progress against targets
  • Manage assumptions

Demand Planning - Dashboard 2017

Demand Planning - Consensus Demand Plan 2017


In addition to the standard corporate measures of revenue, margin, inventory value, on-time delivery and constraint utilization, metrics associated specifically with demand planning and forecasting are also included in the application’s out-of-the-box dashboards. This allows for focused management of the performance measures most applicable to the function at hand.

Added measures presented in the Demand Planning dashboard include:

  • Consensus Demand Plan – a comparison of each forecast stream in value ($) against the demand plan and annual plan
  • Forecast Accuracy Exceptions – summary of the number of forecast items where the measure is above the critical limit for the selected category of forecast
  • Data Errors/Outliers – summary of the number of data errors or data outliers within the historical actuals that need to be cleansed through the sales data conditioning process
  • Forecast Value Add – an indication if each forecast stream is more or less accurate than the naïve forecast (the historical actuals of the previous period)
  • Forecast Accuracy – measure the accuracy of forecasts with any number of available methods (Volume Error, MAE/Mean, Bias (MPE), etc.)

The measure of success of the statistical forecast sub-process is to check the accuracy of the generated forecast. RapidResponse supports a variety of ways to measure such accuracy including:

  • Mean Absolute Percentage Error (MAPE)
  • Volume Error
  • Value Error
  • MAE/Mean
  • Bias (MPE)
  • Stability (MAPD)
  • Mean Error
  • Mean Absolute Error (MAE)

Demand Planning image


The following graphic illustrates the out-of-the-box Demand Planning application process. This process can be tailored to meet your company's specific business needs.

Demand Planning Process Flow Chart

Duncan Klett The Limitations of Supply Chain Planning Optimization

Duncan Klett - The Limitations of Supply Chain Planning Optimization

First Solar RapidResponse as a Platform for Driving Common Operations Performance Goals

First Solar - RapidResponse as a Platform for Driving Common Operations Performance Goals

Hubbell Managing Demand Variability

Hubbell - Managing Demand Variability

Hubbell RapidResponse and Demand Forecasting

Hubbell - RapidResponse and Demand Forecasting