Certification programs like those offered by IBF are becoming more and more attractive to supply and demand planning professionals. At a time when artificial intelligence makes it possible for employees to fake it until they make it until they get called out for it, certification proves that you’re the real thing.

IBF’s certification programs offer targeted training and education that help bridge knowledge gaps, develop new competencies, and align professionals with the latest supply and demand planning industry standards.

The Difference Between a Degree and Certification

Let’s start by explaining the difference between degree and certification programs.

Advanced education, which results in a degree or diploma, requires years of study. As a degree student, you attend general education classes in major- and minor-specific subjects.

By contrast, obtaining a certificate results from finishing the required coursework in a defined part of supply and demand planning. The studying you do to get a certificate is typically not general; instead, it is explicitly tailored to the specific area of study. Mastery is demonstrated by passing a test.

Earning an IBF certificate requires far less time than earning a degree. Despite this, you come away with in-depth knowledge.

Often, after completing degree programs, graduates pursue certifications when they want to advance in their careers or develop new interests. (Think moving from a warehouse supervisor position into demand planning.) This prevents people from having to start from scratch with a new degree when they want to make a change and allows them to improve their skill set and build on their education.

10 Reasons to Pursue IBF Certification

Here are the top reasons people earn certification from the Institute of Business Forecasting.

1. Improve skills

IBF’s certificate programs provide targeted education about various aspects of supply and demand planning. They offer a focused curriculum that allows you to deepen your knowledge and develop specialized skills relevant to the field. Our experts can help you gain expertise in a high-demand area. It signals employers, managers, and peers that you know your stuff.

2. Advance your career

Earning an IBF certification can improve growth and career advancement opportunities within your organization. It helps demonstrate a commitment to ongoing learning and professional development that will position you above your peers. Supply and demand planning certification shows that you are dedicated to advancing in your career in the field, which makes you a valuable asset. With certifications, you will likely qualify for promotions, salary increases, or access to more challenging roles within your company.

Be aware: Certification can significantly increase salary. Many studies show it can add up to thousands of dollars a year.

3. Stay up-to-date with industry trends

New supply-and-demand-planning technologies, methodologies, and best practices emerge constantly, and the pace of change has only increased with the advent of artificial intelligence. Like many other business areas, supply and demand planning increasingly relies on advanced technologies to improve efficiency, the customer experience, and business performance. IBF’s certification programs help supply and demand professionals stay on top of the latest technological advancements and methodologies, ensuring they are not left behind in the rapidly evolving landscape.

4. Networking opportunities

Enrolling in an IBF certification program while taking part in other learning opportunities we offer is an excellent way to expand your professional network. Imagine being able to ask industry experts and peers questions and get trade secrets that give you an edge. You can also share war stories from work during these changing and challenging times.

You will have the chance to connect with instructors, industry experts, and fellow participants who share your passion for supply and demand planning. Networking often results in valuable new industry connections, mentorship opportunities, and even job offers.

5. Improve problem-solving skills

IBF’s certification programs include case studies, simulations, and real-world scenarios that help participants learn new thinking methods. They require professionals to apply their knowledge and skills to solve problems. Through the exercises, you develop critical thinking and problem-solving abilities, which allow you to address challenges more quickly and effectively at work. It will help you to stand head and shoulders above your peers with lesser problem-solving abilities.

6. Global recognition and mobility

IBF’s certifications are recognized across the world. This makes it possible for you to pursue job opportunities beyond your local area. It is a way to prove your supply and demand planning expertise in the United States, Europe, or anywhere else. IBF professionals are known for meeting a high level of competence and enhancing trust and consistency across different regions and industries.

7. Meeting business goals and objectives

Companies have specific goals and objectives requiring a skilled and knowledgeable workforce. IBF stays closely connected to supply and demand planning experts at leading companies. This helps ensure our certification programs align with the current strategic needs of leading firms. Being certified makes it clear to companies that you are capable of helping them reach their business goals.

8. Continuous learning and personal growth

Certification does not just benefit career progress and business performance. The ongoing learning associated with certification results in personal growth and satisfaction. A focus on improvement encourages people to reflect on their values, beliefs, strengths, and weaknesses. Through self-awareness, they gain a deeper understanding of themselves, their motivations, and their goals, enabling them to make better-informed decisions and lead more fulfilling lives.

Taken together, this builds confidence, which is a reward in itself.

9. Job security and resilience

Relevant IBF certifications will improve your job security and ability to recover from setbacks. Certified professionals are in high demand, especially in industries experiencing rapid technological advancements or the impacts of tariffs.

IB’s certification programs typically cover a broad range of topics, allowing you to improve your skills in a wide array of areas. By investing in your education and acquiring certification through IBF, you can future-proof your career and increase your employability over the long term.

10. Credibility. Credibility. Credibility.

Of course, other training and certification programs are available, especially online. However, IBF’s is different. Our certification program has been around for decades and is the most respected in the industry. If you invest in personal or business-level certification, it will pay off many times over. Plus, you and your business enter an exclusive club that only a small fraction of the industry is a part of.

The Final Word on IBF Certifications

In conclusion, IBF’s individual and group certificate programs provide targeted, specialized supply and demand training that improves skills, increases knowledge, and supports career advancement across industries. It will make you more valuable to your current company and to other businesses.

Earning certification boosts self-confidence and provides a sense of personal satisfaction. Of course, studying for and passing rigorous certification exams is challenging and requires dedication, effort, and perseverance. Successfully earning certification validates your hard work and expertise. People who earn their certification through IBF are quick to claim and promote their status.

The sense of accomplishment that comes with getting certified can inspire you to set and achieve even greater career goals.

Plus, at a time when too many people are using artificial intelligence to fake it until they make it… or fail, IBF certification proves you are the real thing.

Are you ready to earn your IBF certification? Would you like to get your team certified? Find out more.

Are you interested in a challenging career that will put you in an influential position at work and provide significant career growth potential?

Then, working in demand planning might be an excellent option for you.

Demand planners are crucial in forecasting future demand, optimizing inventory, and improving overall business efficiency. The field provides opportunities for cross-functional collaboration, exposure to diverse business areas, and the chance to significantly impact a company’s profitability. In addition, it plays a critical role in consumer satisfaction. Demand planning is a growing field offering career opportunities, limitless learning potential, and the opportunity to work in many industries.

Individuals who want to become demand planners must be interested in data tracking and analysis, understanding consumer behavior, and anticipating market trends. That’s because their ultimate purpose is to help businesses meet consumer demand efficiently.

If you choose a demand planning career, be prepared to develop a specific skill set, gain relevant experience, and continuously adapt to the ever-evolving world of supply chain and demand planning, where change is only accelerating with the introduction of AI.

This guide explains everything you must know to become a successful demand planning professional.

Education Requirements for Demand Planners

The first step in becoming a demand planner is to meet the necessary educational requirements.

A bachelor’s degree in supply chain management, business, statistics, economics, or a related field is typically required. Plan to take courses in data analysis, supply chain principles, and inventory management. Beyond that, consider pursuing a master’s degree or certifications like those offered by the Institute of Business Forecasting, which can help you stand out.

Analytical and Technical Skills Demand Planners Need

Demand planning is all about data analysis and forecasting. Develop your analytical skills by learning to interpret complex data sets and identify trends. Gain expertise with statistical software and tools. Start with Excel and then build up to more advanced ones such as SAS and R. Demonstrate your systems proficiency by mastering enterprise resource planning (ERP) systems and demand planning software. These are crucial for developing accurate demand forecasts and effective supply chain strategies.

Soft Skills for Demand Planners

One of the career-enhancing opportunities that demand planning offers is the opportunity to work with so many cross-functional partners. Many demand planners cite this as why they were offered advancement opportunities quicker than their peers.

Because demand planners must handle many types of tasks and work with a wide array of stakeholders, they will be more successful if they develop specific soft skills, including:

• Communication: Demand planners should be able to clearly communicate complex concepts to different stakeholders, including people in sales, marketing, finance, operations, and company leadership. This includes not just explaining the what behind forecasts but also the why.
• Collaboration: Demand planning often requires collaboration across many departments and functions. Getting everyone in a room to agree is a skill in and of itself. It’s easier to do this with solid collaborative capabilities, supporting partnering with other teams, information sharing, and working together to achieve common goals.
• Adaptability: Many factors, including market changes and unexpected events, can impact planning. Demand planners must be flexible and adaptable enough to adjust forecasts and plans in real-time.
• Problem-solving: Supply chains are becoming ever more complex. Consumers seem to change their minds more than ever. As a result, planners will frequently encounter challenges and uncertainties during their workday. Solid problem-resolution skills are necessary to identify and resolve potential issues, such as forecasting mistakes, data errors, or supply chain disruptions.
• Continuous improvement: Demand planning changes rapidly, even more so since the introduction of artificial intelligence. Planners must stay up-to-date on the latest trends and best practices in the field.
• Leadership: Leadership doesn’t only refer to managing other people; it comes in many forms. Demand planners must inspire other teams and stakeholders to achieve common goals, which requires the ability to both listen and influence others to drive a consensus among the team.
• Attention to detail: In demand planning, little things make a big difference. Attention to detail is key for success. Identifying small issues can save a company millions of dollars in inventory reductions and increased efficiency.
• Organization: Demand planning is all about juggling many plates at once. People with differing priorities will pull you in many directions. Planners must be capable of prioritizing their work and staying organized and structured in their approach to data analysis, forecasting, planning, and working with others.
• Time management: Planning is time-bound. That’s why demand planners must master time management and set priorities.

Experience Needed for Demand Planning Roles

Hands-on experience is incredibly valuable for understanding the complexities of demand planning and handling challenging situations.

Start by looking for internships or entry-level inventory management, procurement, or logistics positions. Larger organizations offer rotational programs for new grads that can provide excellent exposure to the various parts of the supply chain. This will help you learn the factors that influence demand and how supply chains operate. Aim to participate in cross-functional projects to find out how different departments influence supply and demand planning.

Build a Professional Network

No demand planning professional achieves success on their own.

Start by seeking out internal mentors. Look for people in roles you may aspire to one day and ask for their guidance.

Both internally and externally, networking and building connections are essential.

Join professional organizations like the Institute of Business Forecasting to connect with peers and industry experts and continue your education. Attend conferences, workshops, seminars, boot camps, town halls, and other events to stay on top of industry trends and best practices. (These are also great places to seek out external mentors.)

Networking can help you broaden your industry knowledge and open doors to career opportunities. People love to help others; you just have to ask.

Show Off Your Demand Planning Work

As you gain demand planning work experience, develop a portfolio that showcases your projects and achievements. (Consider building a website you can link to from your LinkedIn profile or share with prospective employers.) Include case studies, forecasts, testimonials, and strategies. Document how your work resulted in business improvements and efficiencies and helped prevent supply issues.

This is also a great time to start giving back. It is said that there is no better way to master a subject than by figuring out how to teach it. Write an article for a publication like the Journal of Business Forecasting. Present what you have learned or a case study at a conference.

Keep Learning and Stay Informed

Demand planning is dynamic, with methodologies and technologies constantly emerging. Introducing artificial intelligence into the practice has only accelerated the pace of change.

Too many people sit back and expect others to establish their ongoing development plan, only to be frustrated when they realize they are being left behind. Take ownership of your career development. Stay informed about the latest trends in supply chain management, data analytics, and demand planning. Engage in continuous learning through online courses, webinars, and publications like those offered by IBF. Participate in local industry networking meetings. Keeping your skills and knowledge current is critical for advancing your demand planning career.

Taking these steps is the traditional way to achieve success in demand planning.

Other Paths To Get Into Demand Planning

Not everyone follows the traditional path into a career in demand planning. Think of all of the inputs that go into creating a solid forecast. With the right analytical skills, cross-functional partners who understand what goes into a demand consensus process can become great demand planners. Some alternatives include:

Move into Demand Planning from Customer Service or Sales

People who work in customer service or sales positions have valuable insights about consumer behavior and market trends that can benefit demand planning.

Moving from these areas into demand planning is a relatively common career trajectory. People who do this have a solid understanding of product demand and customer needs. To become effective demand planners, they must develop analytical skills and familiarity with demand forecasting tools.

Shift from Analytical Roles into Demand Planning

Professionals with analytical experience in industries like finance, marketing, or healthcare often find these skills transferable to demand planning roles. Because they can interpret data and identify patterns, they usually become valuable members of demand planning teams. Once they learn supply chain dynamics, inventory management, and effective soft skills, they can leverage their analytical expertise in a new way, making demand planning richer through cross-industry insights.

Transfer from Inventory or Logistics Positions

People already working within or adjacent to the supply chain, such as those in inventory or logistics jobs, have a basic understanding of the flow of goods and the issues impacting it. In the end, their lives have been made easier or harder by, among other things, a good forecast. Moving up to a demand planning position is often a positive career move.

Before making the shift, candidates must expand their skills to include demand forecasting while also developing a broader perspective of the supply chain. Training like that offered by IBF will be critical to ramping up quickly.

The alternative paths people can take into demand planning positions demonstrate how expansive the field is. Building an effective demand planning team requires many people with different skill sets. There is no single way to become a demand planner, and based on our extensive experience with the industry, every career and path into it is unique. That’s why IBF offers so many resources to help practitioners and hopefuls achieve success.

How Long Does It Take to Become a Demand Planner?

The timeframe for becoming a demand planner varies from a few years to several, depending on your educational background and work experience. With a bachelor’s degree in supply chain management or a related business field, you might expect to spend about three years gaining relevant experience in inventory management, analytics, operations, or other associated areas before moving into demand planning.

For people who come from unrelated disciplines or do not have a college degree, it may take more time to develop the skills and industry knowledge needed to qualify for demand planner positions. Seeking opportunities to learn about market trends, forecasting, and inventory management can speed the process.

Becoming a Demand Planner: The Final Word

While there is no single path to becoming a demand planning professional, there are a few things people need to succeed in the field.

• Expertise in data analysis. Demand planners must be solid at interpreting data. It’s the only way to forecast demand accurately. They must constantly improve their analytical skills and master specialized forecasting software. Understanding historical trends and predictive modeling is critical for achieving success.
• Understanding of supply chain dynamics. It’s critical to know how supply chains function. Understanding how the inputs into the forecast impact its accuracy, and how your forecast accuracy impacts others downstream, is the true demonstration of your understanding of the demand planner role. Learn about the complete process, from procurement to distribution, especially the effect that demand planning can have on each stage.
• Communication and negotiation skills. No demand planner works in a vacuum. It requires building solid relationships with many stakeholders and ongoing coordination with internal teams, suppliers, and manufacturers. Every team is managing to different metrics. Many speak the language of their function (i.e., dollars vs. units). Learn how to communicate and negotiate effectively to ensure operational efficiency and cost-effectiveness.
• Focus on leanness and efficiency. Become familiar with lean and agile management practices, which are how companies operate to improve efficiency and reduce waste.
• Master project management. Supply and demand planning is project-driven. That is why understanding the fundamentals of project management is beneficial. Learn how to plan, execute, and monitor projects while limiting risk. This will help you manage initiatives successfully.
• Be adaptable. Demand planners must be able to adapt to change and solve problems. Pay attention to what’s going on in the world around you. Practice resilience by exposing yourself to different demand planning scenarios, such as market shifts or supply disruptions. This adaptability will help you feel confident that you can handle any situation, even in challenging times.
• Find a mentor. Partnering with a trusted and experienced professional is a great way to gain fresh insights and perspectives. Stay on the lookout for mentorship opportunities, and don’t be bashful about asking for support, either from senior demand planning leaders or others in the organization. The worst they can say is no, but most will want to help or will be willing to refer you to a colleague better suited to supporting your goals.

These tips will equip aspiring demand planners with the skills and knowledge to transition successfully into a new position and help people already in the field advance their careers.

Get a jump start by taking advantage of all the resources available through IBF, including our training and networking opportunities, journal, podcasts, and more.

And for students, and others just starting out, IBF offers free events including webinars and regional events. You can also volunteer to help out at IBF conferences and events and receive free admission. Contact IBF to find out more.

You came to the meeting well prepared. You had all your data well organized, your charts were all updated and you had copies for everyone. The meeting began well, and you offered your insights and recommendations to the team. Everyone listened, but in the end the team went with the numbers the sales team wanted.

You left the meeting feeling very discouraged. They didn’t believe you. They didn’t trust your numbers or insights.

Despite all our preparation and thoughtful insights, too many Demand Planners all too often leave planning meetings without having an opportunity to make an impact on the decisions being made. I know how this feels as I learned the hard way that no one has to listen to my brilliant insights. For that, I had to earn the team’s trust.

Over the years that I worked as a Demand Planner, I learned 5 skills that helped me work effectively when meeting with the sales, marketing, operations, and finance teams. They are:

1. Be data-driven but open to the value of experience.
2. Know your products and customers.
3. Be bold in planning and humble in correcting.
4. Collaborate without ego and let others be right
5. Be teachable and willing to teach others.

Let’s see how these look in action.

Be Data-Driven but Open to Experience

Demand Planners live in a world of data. We plan by looking at trends and monitoring KPI’s, and we know where to find data to support our recommendations. But not everyone understands the value of using data in planning. Salespeople in particular often view data as only part of the overall planning process.

They are in regular contact with the customers, they manage the products, and they drive the programs that support the sales plans. And when we present data that challenges their perspective, we should expect that they will defend their numbers.

Most often, the best plans balance the impact of both data and experience

So we need to present data in a way that doesn’t openly risk making them look wrong. One way I managed this was to say, “My numbers are different from yours. Help me understand what I might have missed in getting to my number.”

We need to invite them to help us better understand the business, and where it makes sense, be willing to incorporate their insights into our planning. Most often, the best plans balance the impact of both data and experience.

Know Your Products & Customers

It’s much easier to plan items that we know. That’s why when I worked as a Demand Planner, I attended product reviews and also visited the locations where my products were sold. I wanted to know what the products looked like when they are on the shelf, how they are priced, what items were set next to them, and where in the location my products were stocked.

I also met regularly with the customer teams responsible for ordering and shipping our products so that we would both know how they expected our products to ship and perform. We jointly managed product shortages, returns, defective products and pricing issues. By doing this I knew first-hand what issues might impact product availability, and I was able to include this information in my planning.

Be Bold in Planning & Humble in Correcting

It can be intimidating to work with sales, finance, marketing and operations people who have more experience in the business than we do. They know from experience what issues can impact production, shipping, and sales so when we offer recommendations, we need to be confident in our numbers.

At the risk of sounding obvious, this means we need to know our numbers. We need to believe that we have something of value to offer the team — because we do. We have the data that the team needs to consider when making planning decisions. And we need to be able to present our recommendations artfully and confidently.

We need to be humble when it’s clear that our numbers are inaccurate

We also need to be humble when it’s clear that our numbers are inaccurate or where other factors trump our information. Defending a clearly inaccurate or outdated viewpoint will quickly undermine any confidence that the team might have in us. Instead of defending your numbers, openly thank the team for their insights and incorporate their perspective into your planning.

Collaborate Without Ego & Let Others be Right

Planning in most businesses is a relatively high-stakes process as company profitability, stock values, and individual bonuses are often on the line. This means that people’s egos are often involved, and this can cause both individuals and teams to make poor decisions.

When people feel that something they value is under attack, they will most often try to defend their perspective even if this harms the team’s overall goals. As Demand Planners we need to take responsibility for removing our ego from any recommendations we present.

When people feel under attack, they will defend their perspective even if it harms the team’s overall goals

Further, we need to tactfully call out others when we believe that their perspectives are driven by their ego. When someone on the team loudly and persistently defends their viewpoint, we can acknowledge that they feel strongly about the issue and invite them to tell us more about why they think their viewpoint is right.

It may be that they are only expressing frustration with the planning process (which can be messy). Or it may be that they have experience with previous similar situations and did not speak up then, so now they are working to make sure their voice is heard. In any case, inviting them to share their reasoning with the team can help reduce the impact of their ego in the planning process.

Be Teachable & Willing to Teach Others

Any effective planning process is also a learning process. No one can anticipate all the factors that can impact a product’s availability and performance. Good S&OP teams are always learning new information about their customers and their markets.

No one has all the answers. We need to actively participate in learning all that we can about our products, customers and markets. We also need to learn how to effectively interact with the members of our team. Some of them will want to know everything we can tell them about their business, while others will be satisfied with a general overview. Some of them will constantly challenge us, while others will see us as a valuable resource and include us in their planning.

Some team members will constantly challenge us, while others will see us as a valuable resource

And when we get the opportunity to show others how we analyze our business and what factors we include in making recommendations, we should gladly share with them what we know. By listening to others and sharing what we know, we can build relationships that will encourage others to trust our judgment.

Trust Takes Time to Build and is Quite Fragile

Remember that no one owes us their trust. It is something we must earn. And we earn trust by offering the team what we know and learning from them how to best support a solid planning process. Our goal must be to help create an environment where everyone can contribute to a pool of knowledge that we can all share and use to make the best possible decisions for the company. This won’t happen overnight, and there will be people who will never trust us completely.

You don’t go to meetings to be ignored. Hopefully what I have shared from my own experience can help other Demand Planners understand how to patiently build trust in the demand planning role so that they can participate actively in an effective and profitable planning process.

This article originally appeared in the Summer 2022 issue of the Journal of Business Forecasting. To receive a print copy of the Journal every quarter, become an IBF member or subscribe. 

To build a collaborative forecast, you need more than just Marketing, Finance and Supply Chain; you must have Sales involved in the process. They add customer level insights, market intelligence, and real time information that is often not available from anyone else.

Making and keeping a connection with your Sales partners is not easy, but it will pay dividends if you are willing to put in the effort. Here are a few key practices I have used successfully to build a good two-way relationship with Sales that has not only benefited forecast accuracy, but helped Sales drive revenue.

Don’t Assume Everyone Thinks Like You

Never assume Sales is operating with the same “one number” philosophy that Supply Chain uses. Make sure to ask if there are customers being targeted for growth or that are being allowed to decline. You might be surprised to find variances that will provide you with valuable insights that algorithms simply cannot identify.

Do not assume that every person you engage with in your forecast discussions will interact with you the same way, and process data the way you do. Learn Sales vernacular—do they use dollars or units, what calendar period do they compare to, and how do they aggregate their data? Be prepared to modify some of your data to make it user friendly for your audience.

It is important to understand that you will encounter colleagues in Sales who embrace the approach, soak up data, and ask for more. You may have others that are not as enthusiastic to engage and need more time to get up to speed. As you both learn how to work better together, always be clear as to what it is you are looking for from your relationship with them. Do not assume they know what a Demand Planner needs to do their job properly, and vice versa.

It is always good to remind those you work with what the demand forecast is used for in your organization, and how valuable the work done to improve forecasts is to company performance in terms of inventory savings, increased revenue, and customer satisfaction.

Work Hard To Be One Of The Team

Often the personalities of Sales are more extroverted compared to those in Supply Chain—do not let this intimidate you. Show your interest in learning what challenges they face, how they are measured and—equally as important —get an insider’s perspective on your customers. Start by asking to attend sales meetings, customer reviews, planning sessions, and whatever is relevant to your role and available in your company.

As your presence becomes more familiar, and you begin to understand the Sales culture, you can learn what important goals they are working towards, how they are incentivized and, most importantly, they will become comfortable with sharing important insights and keeping you connected. As you build a reputation for being passionate about helping drive the business, you create partnership opportunities. As you build this rapport and establish trust, you can ask harder and more challenging questions, and ask for feedback to make things easier.

In a strong two-way relationship, you need to ensure you are giving at least as much as you are getting. As you build your connections over time, you will begin to get more invites to important meetings, receive more relevant emails, and communications will be less challenging.

Trust, Trust, Trust

Now that you are building your connections, you need to ensure you maintain trust. Many people avoid the forecasting process because it is one where you are often wrong. Make sure you give lots of credit to your colleague/s in Sales when you get information that leads to a better forecast.

You also need to show appreciation for the effort in getting information that may not be valuable as well. Customers are not always forthcoming with their numbers but having a Salesperson that is willing to make the effort and engage with a customer to get information is extremely valuable. As you develop a good flow of customer information, you can utilize and learn to refine the data over time.

Remind Salespeople frequently why good forecasts are important. If your motivation is about better customer service and improving profitability, you will get more support than if your only motivation is to improve your own MAPE.

Think Like A Salesperson

Sometimes you need to act like you are in Sales to communicate with Sales. Anyone who has worked in Sales knows you need to be persistent to get a customer’s business. You may have to be persistent to get their responses and to hold their interest. Do not give up when you don’t get fast responses to your questions. Instead, keep asking how you can help them serve our customers better. Remember, persistence pays off.

As you review data, you can also think like salespeople. For example, I noticed that one of our customer’s volumes had declined over the years on a group of items. Since the Salesperson in charge of this account was new, this information provided him a previously unknown opportunity to pursue. Often customers are moved between members of the Sales team, and information is not always transferred effectively.

Do not assume that important pieces of information like this are already known. By providing helpful insights to new hires, you will build better relationships.

When reviewing future sales projections, most salespeople tend to be optimists. To help reduce this spin, I often ask them to project as if they were wagering their own money on the outcome. Phrasing the question to include a pretend bet on the outcome, using money out of their own pocket, may change their frame of mind to be more realistic.

Sell them on ideas like participating in annual sales planning meetings, getting you access to customer portals, including you in customer calls, and even connecting you to individuals at the customer who are directly involved in the purchasing process. If you can take some of the burden off Sales and get information directly, you both win.

When hiring Demand Planners, consider those with successful experiences in selling or working with Sales as they can bring valuable skills to your team. Sometimes it helps to think small if you have just begun to work with the Sales team. Start by building a strong relationship with just one member of the Sales team, and that can become a springboard to expanding your reach. Showing others the work you have done with another member of their team is an effective way to expand your network with the Sales team.

Keep Score & Take Advantage Of Salespeoples’ Competitive Nature

You need to introduce forecast metrics into the conversation at some point, but keep it simple, especially in the beginning. Forget about MAPE, WMAPE, MAD and other metrics that are difficult to understand and not directly relevant to salespeople. For example, try forecast bias percentage (forecast/shipments-1).

This measure is an easy way to show trends in forecast performance that need attention. If you are showing your sales partner that we have over forecasted their customer by 25% the last 4 months, this is a good starting point to take action, and does not require a background in statistics.

Connect metrics directly to each salesperson through their customer and establish forecasting metric targets that are adjusted to the variability of the customer. The most challenging customers should have lower forecast accuracy targets, and vice versa. Your goal is to create a level playing field to stoke competitiveness among your selling professionals. At virtual meetings with the entire sales team present, I have had a lot of fun presenting a Forecaster of the Month award, complete with certificate and photo. Make sure they understand how the metric works, how they can provide additional insights to potentially override the current model, and let the games begin!

Keep It Simple

Everyone’s time is valuable. As I mentioned above, keep metrics easy to understand, and keep the data you share simple, and in a format where it is easy to see the key points. During your forecast discussions or exchanges with your Sales partner, don’t ask for analysis, instead ask for answers. Lay out the situation, then provide specific options or directions to take.

My questions look more like multiple choice rather than ‘fill in the blanks’. I have found this approach to return clear and actionable responses. If you are not getting actionable responses, you may need to better frame how you are asking the question.

Ultimately, where Sales can lend the most value in planning is to explain or — better yet, alert to — outliers. Statistical models do fine when demand is steady while qualitative customer information is very valuable is when there is a change in course. Did a customer gain new volume and, if so, approximately how much and when will it begin? Has there been a shut down due to the pandemic, did they delay a new product launch, or even go out of business?

Since you are now like a member of their team, and better understand their business, you can ask simple, clear and relevant questions and get valuable insight that explains outliers and improves your forecasts.

Win Over Their Leader

As with any large and important change initiative, you need to get their leader’s support early. You may have to work hard to convince them to adopt a forecast KPI to their metrics—to facilitate this, share the dollar value of improving forecast accuracy, i.e., what savings are gained for every one percent improvement in under- or over-forecasting.

If you have not done this exercise, IBF has easy-to-use calculators that can help. Connecting dollars to forecasting improvement will help you get your Sales Leader interested. Remember, how their leader interacts with the demand planning team will set the tone for how the Sales team as a whole interacts with you.

Remember that effective relationships are built over time, not overnight. This is especially true if Sales and Demand Planning have not had a strong connection in the past. By applying the tips above, being an engaged partner, and being willing to lend a hand when needed, you will gain insights into your customers’ behavior and intelligence that will lead to better qualitative forecast inputs.

This article originally appeared in the Spring 2021 issue of The Journal of Business Forecasting. Become an IBF member and get the Journal delivered to your door quarterly, plus discounted entry to IBF conferences and events, members only tutorials and workshops, access to the entire IBF knowledge library and more. Get your membership. 

Sometimes things are not always what they seem or how you imagined them to be. Making my start in demand planning a few years back, there were some important lessons that I had to learn. The following are 5 lessons, or ‘revelations’, that came to me while on the job that would make me a better Demand Planner.

1. Not Everyone Thinks Like Me

There is a tendency to believe that everyone is just like you are, and they think like you do. I admit I used to fall into that mental trap myself. I am a very analytical, logical person and, when starting in forecasting, I thought everything would be about presenting numbers. Numbers represent facts and that’s pretty cut and dry, right? Turns out not everyone understands what I do, or even cares about it.  They are not impressed by the models I use, correlations I found or that my mean absolute percentage error is better than average.

To do my job better I needed to start thinking like a salesperson, supply planner and marketing professional.

But they are impressed by how the insights I provide into what may occur impact them and why things are occurring now. To do my job better I needed to start thinking like a salesperson, supply planner, marketing professional, and even executive management. I needed to learn that not only do people not think like me, they’re also not interested in the technical aspects of my job – they just need the information that is relevant to them and helps them do their jobs better.

2. Numbers Are Not As important As Results

I am not just referring to metrics and measuring accuracy. While those are important and we should measure the results of our forecasts, I have learned it is even more important your forecast has a purpose. I remember being proud of a monthly forecast I was creating with pretty good accuracy one-month out only to find that manufacturing wasn’t even using my numbers.

They needed weekly forecasts and an outlook for what was going to happen sixty days from now. We can create the best, almost perfect, forecast but unless we are delivering what the company needs, when they need it, and in the right format – the results are meaningless. I needed to go beyond the numbers and adapt to who is using my forecast so they actually added value to the business.

3. It Is Not What You Know But Who You Know

Coming into my first forecasting role I started learning statistical models and analytics and even some machine learning. I had a lofty goal of creating the ultimate forecasting model that would be nearly perfect.

What I learned the hard way was that my model never predicted the new marketing campaign we were getting ready to start, the customer that was closing just because he decided to retire, or the product that sales incentivized with a contest last month. It turned out that what was better than my complex models were simpler models with more collaborative inputs.

4. It Is Not Always Our Fault

What I have discovered through developing and presenting forecasts is not that the forecasts are always wrong, rather the users don’t always understand what you are presenting. Using a weather forecasting analogy, if I was to just forecast it was going to be between 60- and 80-degrees Fahrenheit, it would not be hard to be accurate. Forecasting that it will be exactly 77 degrees is a lot trickier.

Accept uncertainty as fact of life, and then work to manage that uncertainty.

People generally look for a number instead of a range and no matter how often I give them a range, they still only wanted a number so that’s what I had to provide.  The lesson I learned here as a Demand Planner was not that my forecasts were rarely going to be accurate. And, instead of perceiving that as a failing, to accept uncertainty as fact of life, and then work to manage that uncertainty.

5. Demand Planning Is Art & Science

Imagine this: I’m putting my final touches on this month’s forecast and I’m adding in a promotion we are going to run. Marketing thinks it may add 10% while Sales thinks only 6%.  After detailed analysis behind the scenes and a little bit of voodoo, I add an 8% lift. Not because I am lazy or fully trust Sales and Marketing and just go with an average, but there is a lot of this that goes into every month’s forecast.

As a Demand Planner, I am managing assumptions more than I am managing a black box.

I think the biggest lesson out of all of these that I have learned as a Demand Planner is that I am managing assumptions more than I am managing a black box or magic wand. Foundationally, what I do is science-based but I have found there is just as much art to it as well. It is understanding how to communicate and ensure my forecast is being utilized. It is working with others and planning for what the number is but also what to do when the number is not exactly that. It is building a statistical baseline and sometimes even using some judgement to develop the best demand plan possible.

Whether your first job out of college is in the dynamic world of demand planning or you are an experienced Demand Planner transitioning to a new company, there are some key principles that will jumpstart the value you bring to your new organization. Here I reveal what they are and how they’ll help you settle into your new role.

As a Demand Planner, the first year in a role is not only focused on learning about the products and processes specific to your company, but also developing trust and credibility with cross-functional partners. Generating forecasts require inputs from key process stakeholders and cross-functional buy-in.

But for Planners, the job does not stop once the forecasts are published. Often, forecasts and assumptions need to be presented during demand reviews and to upper management during Executive S&OP meetings. This requires another set of skills that must be established to be an effective and credible demand planner. With so much to learn, where should time and effort be focused during the first months on the job?

1. Be A Sponge – Absorb As Much Information As You Can

The minute you walk through the door at a new company, your prior experience and education only helps to a certain point. A career is like a book and this new job is a new chapter with blank pages waiting to be filled. A critical component to being a successful Demand Planner is knowing the product lines you plan for inside-out.

Planners need to know the history of the products they work with including when they were first launched and why they were launched.  How has the product performed compared to assumptions documented during the development and new product launch process? What products, if any, are the product line cannibalizing? What are the main challenges and opportunities the product has faced since launch? Understanding the history allows for better awareness of where the product is at now and what potential scenarios lie ahead.

This information, along with knowledge of the other products in the portfolio, will help determine where it is positioned in the Product Life Cycle (introduction, growth, maturity, decline).

Knowing where the product is at in its life cycle is essential for forecasting. This will also give some insight into what is driving the annual revenue and volumes, and the year-over-year growth or decline. If a product is in the decline stage of the product life cycle, it is unlikely that the annual volumes will be increasing year-over-year. Therefore, qualitative information provides an important foundation before digging into the numbers.

Building on the topic of Product Life Cycle Management, a product might be in a different stage of the product life cycle in different markets across the globe. For example, a product line that may be on the decline in North America may just be getting introduced in Asia. The global split of the product’s annual revenue and volume needs to be understood as well.

Another example: the product line may have stronger demand in the European market compared to Asia. Even more granular than that, some SKU’s in the product line may have greater demand in certain areas than others.  An effective Demand Planner not only knows these facts, but also knows what drives that demand and customer behavior. Other qualitative information includes questions such as what is the customer target market and who are the competitors in the industry? Is there any seasonality with the product throughout the year or throughout the quarter?  How about during the month or week?

As you can imagine, it is not likely that all this information is prepared on a document as part of your new hire orientation. Most of this information cannot even be deduced from a spreadsheet or demand planning software. This is where a strong relationship with the marketing and sales organization is not only helpful, but critical to the success of a Demand Planner.

2. Set The Foundation For Strong Relationships

A forecast is so much more than a set of numbers; it is a combination of market intelligence and anecdotal feedback from those closest to the customer. Documenting the assumptions for the demand plan and how the plan connects to the overall portfolio and organizational strategy will help when communicating the forecast during demand reviews and executive S&OP meetings.

Because of the different inputs into the forecast, a Demand Planner cannot just rely on Excel or a forecasting system to develop an accurate forecast. They must put in the time, effort and patience that is foundational to a strategic partnership with cross-functional groups. This includes marketing product managers and product directors, sales operations, commercial finance, customer fulfillment, and R&D.

Just like any relationship, when it comes to building partnerships with other groups in the organization, it takes time to build trust and credibility. Set up introductory meetings with those in departments listed above and learn about each person’s role in the Sales and Operations Planning process and with the product line(s) you will be responsible for. Ask them how long they have been with the company, what a typical day is like for them, and whether they prefer formal meetings or quick touch base discussions. Most importantly, ask what their experience has been like working with the demand planning team and for general advice for being a strong contributor in the organization.

If your goal is to create a strong, long-term partnership with your colleagues, follow up after the meeting with a quick thank you email that is personalized and genuine. Add that you will be scheduling a follow-up meeting in a couple of months after you have had more time to learn about the organization and continue building that relationship. Be sure to provide an agenda in advance of the meeting with the specific questions you want to ask. This preparedness starts building credibility and following through with the follow-up meeting starts building trust.

Even more important than building strong relationships outside of your team is building bonds with those in your team. Being genuine, bringing a positive attitude each day and working hard to learn and start contributing are all things you can control. These actions are foundational to being a great team member.  As you learn from team members, take note of who is an expert in different areas on the team. Everyone brings a set of unique strengths, experiences, and skills.

In addition to learning about your specific product lines, you will need to learn about the different reports, processes and planning systems the planning group and organization uses. This is where your peers will be your greatest resource and support system. Learn who loves teaching certain topics and go to that person when you have a question on that topic. Not only will you be learning from each of the experts in your group, but your team members will be happy to have helped you. It is a win-win opportunity and great for developing that relationship.

3. Develop The Craft of Executive Communication

The most successful Demand Planners are not necessarily the ones with the most accurate forecast. Succeeding at the skills above are prerequisites to publishing your demand forecast. That forecast means nothing if you do not get the buy-in from others in the organization. That can include those who share responsibility for the forecast, such as marketing or sales.

It can also include supply planning and operations as they are responsible for ensuring enough inventory is available to fulfill global demand. It includes senior management who are considering the risks, opportunities, and assumptions you present to make critical decisions for the organization.

How you present the forecast and demand plan needs to be tailored to the specific audience you are delivering information to. A key part of developing the craft of executive communication is knowing your audience and presenting in a way that is simple for them to understand and answers the questions lingering in their mind. Consider that marketing and senior management speak in dollars and do not care much about units. On the flipside, supply planning and operations speak in units and are concerned with how a forecast change is going to impact absorption, inventory dollars and capacity utilization.

Being able to present the data visually and provide concise, documented assumptions takes practice. It also takes confidence. This is where the first topic we discussed about absorbing as much information as possible helps you learn your product line inside-out. In college it was always easy to tell which groups prepared and did their research and practiced before a presentation. It was also evident when other groups were just “winging it”. Some natural presenters may have completed the presentation unscathed, but the façade would inevitably be broken during the Q&A portion of the presentation. As a Demand Planner, you must spend extra time in the first months of your role preparing for demand reviews and other S&OP meetings because you will still be learning everything you can about the product lines you are planning for. That means spending time truly understanding the data you are presenting, crafting a style of communication that delivers valuable information in a way suitable for your particular audience, and asking others on your team about the structure and expectations for each of the meetings in the S&OP process.

Conclusion

The powerful combination of knowing the numbers and background of all your products, investing in relationships throughout the organization and communicating with confidence all help build organizational street cred. This is how others will gradually trust and turn to you when major decisions need to be made.

It is vital to remember that in forecasting there is always something to learn and improve. Every product line and company bring a unique set of challenges and opportunities that add to your craft as a Demand Planner. Leveraging the keys to success outlined in this article will help you beat the steep learning curve and accelerate your success as a Demand Planner in any organization.

This article was originally published in the Spring 2021 issue of The Journal of Business Forecasting. Become an IBF member to get the Journal delivered to your door quarterly, plus a host of other member’s only benefits including discounted IBF training and conferences, exclusive member’s only workshops, and access to the entire IBF knowledge library. Click here to register.

To develop your S&OP skills, there is no better training than IBF’s Forecasting, Demand Planning, & S&OP Live Online Training, held in May 2021. You’ll learn all aspects of the field from university professors and Directors of Supply Chain and Demand Planning at multinational companies. Pick and choose each module for $379 ($329 when you become an IBF member) or the full course plus exams to get IBF CPF certified. Find out more.

“I think this is the perfect career move,” Nicolas Vandeput, founder of SupChains, says of incorporating data science skills as a Demand Planner.

Like so many industries, the way we’ve done things in the past in demand planning may not be the way we do things going forward. The line between data scientists and demand planners is blurring.

There will be a time in the future when answers become a commodity, and questions are the premium. Adopting a scientific curiosity and understanding the right questions to ask will become a valuable skill.

The effect of data science on demand planning and supply chain planning can’t be underestimated. Demand Planners can no longer rely on how we’ve always done things.

Does that mean, however, that data scientists can be effective demand planners?

We spoke with author of Data Science for Supply Chain Forecast and founder of SupChains, Nicolas Vandeput, who laid out what data scientists bring to demand planning and how demand planners can leverage data science to evolve in this rapidly changing field.

“I think this is the perfect career move,” Vandeput says of incorporating data science into your demand planning repertoire, on an episode of IBF’s On Demand podcast.

We know data science is not demand planning. There are significant differences in these fields. But there can be valuable synergy between them, as well.

Vandeput unpacked exactly what Data Scientists and Demand Planners can learn from each other, how a data scientist can apply their expertise to this field, and how a Demand Planner can become the supply chain Data Scientist in your company.

Adopting A Probability Mindset In Demand Planning

Demand Planners live in a world of ambiguity. We’re never “right”; we just hope to be close in our forecasts. This lack of precision can be a challenge for Data Scientists, who specialize in answers.

Is that ambiguity a problem that data scientists need to overcome?

Vandeput doesn’t think so. “In data science, you try to be as accurate as you can, but you totally accept being 99% [accurate],” he says. So, data scientists accept some ambiguity, too — but they typically have a clearer understanding of just how much there is.

He says this is because of the “science” part of data science. A scientific mindset is all about experimentation, observation, and curiosity. Data Scientists, then, must be able to test new ideas, accept failures, and move on to the next idea.

The real difference that a data scientist brings to the table is a probability mindset. While Demand Planners are comfortable with ambiguity, data scientists can accept that ambiguity, but also consider the probability of accurate forecasts with a given model and adjust their models to achieve higher probability of accuracy.

Adopting a probability mindset, rather than simply accepting traditional levels of ambiguity, could help demand planners achieve more accurate forecasts.

The Project vs. Process Workflow

We might see Data Scientists and Demand Planners as complementary but distinct roles that require different skill sets. In that case, a breakdown of roles would look something like this:

• Data Scientist: Work on a project basis. Focus on developing a forecasting model based on data you receive, and hand it off to the demand planner.
• Demand Planner: Work in an ongoing process. Apply the model to manage assumptions and stakeholder needs. 

As a Demand Planner, you manage a process, perhaps weekly or monthly, with ongoing adaptation to new “inputs” or pieces of information. 

Data Scientists, on the other hand, have a project to work on. They develop a model and hand it off to a Demand Planner once it’s working. They may have to adjust the model or develop new models, but that won’t require such an ongoing process.

“I do really think that if you have a deep expertise in your market or your business as a Demand Planner, you really know your data,” Vandeput points out. “You know what client is important, seasonality, or which promotion is important.”

That knowledge and skill establishes who could be a good data scientist for a specific program, Vandeput says. But to become a broader asset in your company, you must consider some of these shifts toward a data science mindset.

Applying a Data Science Background to Demand Planning

We’re seeing a lot of people coming out of college with expertise in data science who weren’t necessarily thinking about demand planning as a career. But the jobs are finding them. As companies become more aware of the benefits of machine learning and AI, they’re more interested in putting people with a background in data science in demand planning roles.

People with an academic background in data science can move into a demand planning role thanks to their advanced analysis skills. But to successfully make the transition, it’s imperative to broaden that skill set to understand the language of sales and supply chain management.

Here are Vandeput’s tips to make the transition:

Talk to people. A data scientist can develop a good model, but that model can’t see everything. Talk to clients or production facilities, for example, to tap into that human intelligence about the supply chain.

“As Data Scientists, you’ll be able to bring a really good model,” he says. “But from there as a human, you need to bring some kind of extra layer of intelligence.”

Stay curious. Keep that scientific mindset, that curiosity, and incorporate collaboration. Incorporate new inputs — what you learn from conversations with people in your supply chain — to develop stronger models.

“As data scientists,” Vandeput says, “it’s really clear that if you ask different people with different mindsets, the input, you’re going to end up with a better number.”

What Demand Planners Can Learn From Data Scientists

Data Scientists aren’t the only ones who need to adapt to better serve the demand planning process, though. As data science becomes an increasingly important part of the supply chain, Demand Planners can look for opportunities to start challenging the way we’ve always done things.

That scientific mindset, the curiosity, the ability to admit when you’re wrong and to look objectively at your forecasts and assumptions are skills we need as Demand Planners. 

If you’re in a Demand Planner role, consider how you can expand your skills to become what Vandeput calls the “supply chain data scientist” at your company. You might think about the following:

• Add coding skills: You don’t have to become an expert at R or Python, but a basic understanding of coding can help you utilize the resources at your disposal, such as packages of code you can copy and paste to develop new models.
• Incorporate external data: If you’re only looking at internal sales, you’re not seeing the full picture. Incorporate additional inputs to create more accurate forecasts and avoid repeating mistakes.

Combine these empirical skills with your ability to communicate, collaborate, and orchestrate those ongoing processes puts you in a position to meet the changing needs of demand planning in the future.

This is based on an episode of IBF’s On Demand podcast, a leading show for demand planners and business forecasters about the latest trends and future of demand planning, forecasting, predictive analytics, and S&OP.

If you’re just starting out in your career, the corporate ladder may look insurmountable and overwhelming. You may feel that in demand planning, business forecasting, S&OP and related fields, it Is especially difficult to make it to the executive corner office. I am here to tell you that a promotion is not out of reach and if you want it and work at it, there are opportunities at director level and above.

I am going to be honest with you though, there are challenges, there is bias, and you may be your own worst enemy. But if you are determined to move up or change the course of your career path, there are some things you can do. Drawing on my own career in which I have worked as Director of Demand Planning at various companies, here are nine tips that can help you move from the cubical to the board room. Let’s get going and climb that corporate ladder!

1. Develop Your Own Career Map

To achieve your full potential, you need to own your career path. You cannot wait or assume your boss will just reward you for your hard work. Understand what it is you really want to do professionally. Ask yourself what your professional identity is and what it needs to be to get where you want to be. Figure out your strengths, values, and preferences and determine how these qualities will fit into the identity you aspire to become. Then create a roadmap that will get you where you want to be.

2. Be Willing To Let Go

There is a common career staller for demand planners who are technically proficient and have a lot of business forecasting expertise. You see, it may be all that success and ability that is stopping you from advancing. Many organizations become dependent on you as an individual contributor and fear that they may lose those insights if they put you in a management role. Leadership inherently requires letting go of control and enabling others to do the work. You have been effective, so the need to make changes in order to break through to leadership may be just what you need. While I do not advocate being less successful as an individual contributor, early on in your career you need to try to balance your time with strategic planning, coaching others, developing people and other work – and all that necessitates stepping back.

3. Be willing to Accept Risk

You are going to make mistakes. There is a great sports axiom – you miss 100% of the shots you don’t take. Making mistakes is one of the best learning opportunities there is, so don’t be afraid to make one. By trial and error, you’ll learn. From experience, you’ll grow. From failure, you’ll gain wisdom. From success, you’ll gain confidence. That’s the beauty of taking risks. Basically what I am saying is take the shot and don’t worry if it misses.

4. Come with Solutions

I hate the saying “don’t bring me problems, bring me solutions”. That’s how small-minded managers think. That said, regardless of how junior you may be or what department you are in, you can have ideas that positively affect the company. Bring solutions to the table or anything that can improve things in your area. Show people that you think strategically and look beyond your day-to-day activities. Do not be content with just doing things the way they have always been done and do not shy away from opportunities to show you add value at a higher level.

5. Play Well With Others

You never know who may end up being your boss or helping your career so try not to burn bridges early in your career. With what we do we have the unique advantage of touching so many other departments and collaborating with so many people. Use this and remember there may be a lot of value in doing things that at the moment do not benefit you. These relationships and positive behaviors may not have immediate benefits but in the long run, they may open up doors or move you up the ladder.

6. Promote Yourself

While this may not be entirely possible you can be your own greatest cheerleader. It is not always intentional but your boss and others may not know how great you are or the success you just had. Be comfortable with bragging about yourself from time to time. Not to the point that it is all about you, but a little positive press on a big accomplishment may be just the thing you need to get noticed. When others are aware of your value, they can help you get the recognition you deserve or help you get promoted.

7. Be an Influencer

The surprising thing is that you don’t need to be a director to have influence. I was an analyst running an executive S&OP process. I have seen others without a title be the one in a room that others are listening to. Your character and confidence build the trust and respect needed so people listen to your comments and value them. When you lead, others want to follow you. As you become to be known for getting things done, building alliances, and gaining buy-in for your ideas, you begin to be the kind of person people rely on. Then it only makes sense to promote you to a position that uses these qualities.

8. Continuous Learning

Truly good leaders are constantly learning. They’re the first to tell you that they don’t know everything. As a result, they are always challenging themselves and keeping on top of trends in the field. To help you, find ways to attend IBF conferences, read up on developments in the field and best techniques and methodologies, watch videos, and become active in the wider demand planning community. Consider getting IBF certified and challenge yourself to write for an industry publication [Ed: like the Journal of Business Forecasting] or speak at a conference or webinar. All these things help position you as a thought leader in the field. As a result, you’ll be prepared when higher-level positions open up because your skills and knowledge will have expanded.

9. Orchestrate Your Own Promotion

If all else fails and you find yourself in a position where no next level is in sight, it may be time to create your own. I have done this many times myself and have seen it successfully done by others. Many companies do not have a director of analytics or demand planning for you to move into. Help the organization understand the benefits of the role you want and show them that no other existing department can do it the way you can. Build a business case around what you can do for the company and include the new role, scope, responsibilities, and value. If you are genuinely hungry for a career advancement, you’ll make the promotion yourself.

Find your next role on IBF’s Jobs Page which features a range of demand planning, forecasting, supply chain and related vacancies.

An excellent way to secure your next promotion is to get IBF certified. This globally recognized demand planning certificate puts you in an elite group of forecasters and demand planners with many CPF professionals reporting that it helped land them their next promotion or pay raise. Click here for more information.

I recently received a LinkedIn message from a relatively junior connection asking a simple question: what education, training, experience, and character traits are needed to be a good S&OP leader? I thought, “What a great question,” and “this topic is not often discussed.”

It made me think a lot about my career and those of people in the profession whom I admire. There is so much conversation these days about talent shortages and the lack of career definition within the supply chain planning profession, yet there is rarely a meaningful discussion about the qualities and competencies required to be a great planner.

Of course, it would be easy to say, “Get a degree in industrial engineering or supply chain management or statistics; find a way to cross-train a bit in supply and demand functions; and then work hard.” But that statement lacks any meaningful context and fails to truly address the spirit of the question as posed.

Admittedly, I liked this question in part because it presupposes S&OP leadership as one of the loftiest roles in the supply chain profession—a place where it arguably belongs. It is a role that requires extensive subject matter knowledge of demand, supply, product portfolio management, finance, and a heap of change management for good measure. A capstone job as it were, with practitioners capable of flexing in and out of supply chain sub-disciplines as needed to solve problems throughout an organization’s supply chain. The only thing seemingly missing from the job requirements is a cape and a mask.

Among long-time S&OP practitioners, our “origin stories” usually evoke a wink and a chuckle, since most of us did not follow a set pathway in our careers. S&OP leadership was never considered a “destination profession” for me and my peers; most of us meandered our way to these roles. Some planned better, while others had careers like mine—a bit more random, which seems a bit ironic for a planning professional, don’t you think?

As I formulated a response to my LinkedIn friend, I realized, not surprisingly, my career seems a perfect example of the typical S&OP leader’s journey.

The Meandering

My early professional career was marked by a series of starts and stops at half a dozen different companies. After putting in my four years at college, and then six months at a technical programming school, I went to work designing manufacturing systems in FORTRAN and ALGOL— the hot computer languages of the day. I was a computer programmer trained in systems design and development, and my initial focus was manufacturing and distribution. For nearly a decade, I worked 12-to 18-month stints for a variety of organizations: a manufacturer of facsimile machines, a book distributor, an air freight company, a large bakery, an aerospace contractor, and an industrial pump manufacturer.

I learned something new and different at each of these stops: discrete and process manufacturing, distribution, international freight movements, and large-scale project management, among other things. The diversity of these experiences was tremendously helpful to me. I worked within systems groups designing software.

This gave me visibility—literally—to see the data moving through these organizations. I observed the similarities—and differences—in the types of data and flows based on the type of business. I learned so much about how data are used and leveraged within an organization — and how data are the bridge between different functions within an organization. And as my later experience taught me—it is an essential element when developing a robust S&OP process. In fact, data are so important to S&OP that my most common advice to new hires and those fresh out of school is to study the data flows and systems in their own organizations.

Many pundits talk about millennials as being impatient—too eager to move up and advance in an organization without first demonstrating that they have earned the privilege by proving their competence. I am not sure this impatience is unique to that population cohort, as I was a very impatient young professional 30 years ago. After about a year working in each of these jobs, I would begin looking for the next gig, and I would only consider a position if I were sure I could learn something new.

It took me eight long years before I landed what I consider my first real job, and the enduring lesson for me was patience. Here again, my advice is simple: be patient with your career. Learn everything possible in your current role and continue to increase your experience and knowledge while seeking your “first” substantial role.

As I look back, all of my preliminary jobs served a purpose. In each, I was intentionally enhancing my knowledge and thus “pulling a logical thread” through my early professional zigzag. I also learned a lot about myself: the type of business I wanted to work in, how flexible and open I was to change, and the importance of persistence in working toward a goal.

As I waited for a big job in a great company, I made good use of my time. I maximized each job experience to learn all that I was able in that role. Throughout this self-designed apprenticeship, I continued in my formal education, taking classes a couple nights each week on new programming languages, accounting, marketing, finance—anything that would augment my resumé.

On weekends, I took a job as a clerk in a personal computer store where I learned to repair and configure PC hardware and software. Of course, none of this had anything at all to do with S&OP directly, but I was honing my craft nonetheless, focusing intently on expanding my knowledge on any subject that tangentially applied to my systems-focused discipline. I always ought to widen my education in those instances when my role crossed over into other subject areas, and I rarely missed an opportunity to dig deeper into my chosen profession. The notion of career learning became embedded at this time, and it is a gift for which I am forever grateful.

My Goal Job

Almost unexpectedly, and of course after a lot of patience and education, I was offered my goal job as a systems manager in a manufacturing plant working for a great company. I continued to follow the path that had helped me achieve my new role, and doubled my determination to learn as much as I could. I studied shop floor applications, work flows and data flows, production scheduling, variancereporting, and quality control—all while developing applications to support multiple functions within the plant.

Throughout what proved to be a seven-year stint, I raised my hand to volunteer for every type of training the company offered: Six Sigma, SMED, SPC/SPM, Juran, Empowerment, Team Development, and so on. During those seven years, I participated in 31 weeks of company-sponsored training. I learned every role in a manufacturing plant as I mirrored people in their everyday jobs to better understand how to support them with systems and associated business processes. I completely “got it.” I was working in a manufacturing plant and I knew that understanding manufacturing principles would help me better relate to my colleagues. Further, understanding the competencies required of a good manufacturing leader helped me define the training I needed as well as the systems I would ultimately design. By focusing on becoming a top-notch manufacturing systems analyst, I was actually laying the foundation of my future S&OP resumé without even realizing it.

Of course, not everyone will have the chance to be a manufacturing systems analyst, but the lesson learned was that I should try to expand any role into something larger and set higher expectations for what I needed to know than the job description would otherwise suggest. In this way, I was always ready for the next role when it was offered. In time, I gained enough confidence to begin making recommendations for improvements at the plant, and started developing and purchasing application systems to enhance operations. I specified and implemented a forecasting tool to better estimate demand, and a production-scheduling tool to better manage the flow of a multistage production operation, with the goal of improving stage synchronization. I designed a fast-cycle process to boost production cadence and reduce inventory. I started to feel I was making a difference.

During this time, I learned to be intellectually brave, willing to expose my own ideas for scrutiny. If you seek to make a difference in your company, I believe you must be brave. S&OP leadership will test both your courage and your spine.

The Universal Traits Of An S&OP Leader

I did not offer this backstory of the first 10 years of my career to encourage my LinkedIn contact to become a manufacturing systems analyst, or as a textbook example, but rather to illustrate the underlying requirements of a solid S&OP leader. The role requires passion, meaningful work experience, and a commitment to career learning.

Being an S&OP leader is less about what you know or essential experiences you can check off on a list; it is more about who you are and your attitude. The answer to my LinkedIn colleague’s question is NOT easy. To date, there has not been a singular or standard formula for success in an S&OP role. There are however some universal traits that I see in the best of my colleagues, which may offer helpful advice to any aspiring S&OP leader:

Commit To Your Craft & Seek To Be The Best

Then, even if you never become the best, you are likely to close in on greatness. This will require you to learn as much as you can about every aspect of S&OP. Commitment means dedicating the time to dig deep into the concepts underlying each step of the S&OP process. Learn about statistical forecasting algorithms and stage and-gate processes; understand how best practice companies forecast new products and retire obsolete ones; investigate inventory metrics tied to S&OP, and how decisions on product families within S&OP should be determined.

Despite all my experience, I never stop reading about best practices. I seek out books and articles and re-read old seminal works to see what I missed on the first pass. I attend industry conferences to see how others do the same thing I do but differently. I belong to professional organizations that are centered around best practices so that I may continue to learn. I completed an MBA yet still avail myself of executive education whenever I can. It sounds painfully clichéd, but I never stop learning. Your career begins to stall when you stop learning, so stay committed to your craft.

Cross-Train Within Your Discipline Whenever Possible

I have worked in manufacturing plants, in a distribution center, in inventory control, as a demand planner, in IT roles supporting manufacturing and supply chain software, and I implemented production- scheduling software. A good S&OP leader has a strong working understanding of supply and demand—hands-on experience. And it helps to have some background in distribution and execution. To the extent that you can create job diversity on your resumé with a history of passion and success, you will enhance your ability to be a “great” S&OP leader. Seek to spend significant functional time—focused on the realities of day-to-day business operations and processes—in the realms of both demand and supply planning at the very least. 

Never Stop Learning About Business

Both your organization’s business as well as business concepts in general. Understanding your organization’s business model—consumers, strategy, go-to-market approach—will all add tremendous depth to your value within any organization. When colleagues joke with me and say things like “Whaddya think ya want to be, a marketer?” I take it as a compliment, as validation that I have taken the time to understand important business levers beyond the scope of my profession.

Give Back

Dedicate yourself to one or two professional groups within your field. At this stage of my career, people often ask, “What is left for you to learn?” The answer is, “A lot.” Simply writing articles for APICS Magazine, the Journal of Business Forecasting, or other industry publications has helped me hone my craft and my elevator pitch. I have developed better ways to explain topics—a better turn of a phrase or two—and doing research for articles always enhances my knowledge of a subject. Giving back by writing or presenting about what you have already learned is a guaranteed way to make sure that you yourself never stop learning.

Get Certified

Becoming an APICS CPIM or IBF CPF gives employers confidence that you have the foundational subject matter knowledge to perform a job. These certifications are increasingly a requirement for senior level consideration. The old axiom that you can never take away someone’s education applies equally well to certification.

Stay Current

While there are core principles in any profession, the supply chain world is comparatively new and still evolving. There are amazing advances coming our way in artificial intelligence. Emerging technologies that will influence S&OP in the near-term future include (but are not limited to) machine learning, block chain, and predictive analytics. A good S&OP practitioner will stay atop current technologies; it is the reason why I walk the vendor booths at every conference I attend.

Do Not Focus On A Single Industry

Although I have spent a majority of my career in food and beverage and consumer goods, some of my best ideas for S&OP implementations, process flows, and metrics have come from attending conferences and listening to how other industries have applied S&OP: corrections, health systems, banking, education, and industrial chemicals. Learning about the application of S&OP within other organizations has helped me both as a consultant and as an internal practitioner.

Develop A Thick Skin

I can guarantee you one truth: an S&OP leader will be questioned repeatedly for their motivations, knowledge, and competency. If you are not, then you are probably not pushing change hard enough or creating enough organizational tension. Lazy people; individuals with agendas; people who are uncertain about you, the process, or your role; and those who legitimately differ with your point of view or approach will challenge you, and the going can get rough at times. Develop a steadfastness of cause that resembles a thick skin. And, most importantly, listen to what is said and try not to take it personally. This is a great help in improving your process, content, delivery, agendas, and so on. I personally do not have the thickest skin when it comes to accepting criticism, but I strive to turn any complaint into an improvement if possible, and some of the best ideas for improvement are hidden in the middle of hurtful, negative comments.

Develop Your Critical-Thinking Skills

Delve into problems vigorously. Work the intellectual Rubik’s Cube to understand all angles to an issue, data, or a task. Force yourself to question deeper, find details, and look for exceptions. And then develop multiple answers, solutions, or solves to any question. Problem solvers with critical- thinking skills are the most desired employees. Develop these skills.

Embody The Concept Of Continuous Improvement

S&OP processes need leaders who exemplify the values of continuous improvement. Adopt it as a mantra for everything pertaining to your professional development—if not your personal life—as well as the S&OP process that you lead. Always ask yourself, “What’s next?”

None of these suggestions may be a surprise individually, but in the world of S&OP, they all matter. S&OP is a broad discipline, and one needs to spend time understanding core concepts across a diverse range of topics in order to be truly successful. A commitment to lifetime learning coupled with passion, critical thinking, and business insight will all help grow your career. As I ended my email, I wished my LinkedIn colleague a good journey, with a knowing smirk and a nod of my head. I will keep an eye on this person.

This article was originally published in the Summer 2017 issue of the Journal of Business Forecasting. Subscribe to get it delivered to your door quarterly, or become a member and get subscription to the journal plus discounted events, members only tutorials, access to the entire IBF knowledge library, and more.