Fundamentals of

DEMAND PLANNING AND

REVERSE LOGISTICS
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DEMAND PLANNING
Demand planning is the supply chain management process of
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forecasting demand so that products can be reliably delivered and 7
TABLE OF VISION EDUCATION WORK
customers
CONTENTS are always satisfied.
ABOUT ME
AND MISSION Effective
SKILLS demand
BACKGROUND planning
EXPERIENCE can

improve the accuracy of revenue forecasts, align inventory levels

with peaks and troughs in demand, and enhance profitability for a
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particular channel or product
FREELANCE
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MY PROJECT MY PROJECT CONTACT END
EXPERIENCE
SUPPLY CHAIN MANAGEMENT 3
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Demand planning is a supply chain management process of

forecasting, or predicting, the demand for products to ensure they
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can be delivered and satisfy customers. The goal is to strike a balance
TABLE OF VISION EDUCATION WORK
between havingABOUT
CONTENTS sufficient
ME inventory
AND MISSION levels
SKILLS to BACKGROUND
meet customer needs
EXPERIENCE

without having a surplus. A wide variety of factors can influence

demand, including labor force changes, economic shifts, severe
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weather, natural disasters or global crisis events.
FREELANCE
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MY PROJECT MY PROJECT CONTACT END
EXPERIENCE
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How demand planning improve

the supply chain?

To maximize profitability, supply

chains need to be as efficient as
possible. Accurate demand
planning is critical in ensuring
supply chains are efficient for
inventory and, ultimately,
revenue.

ELEMENTS OF DEMAND
PLANNING
• Product portfolio management
• Statistical forecasting
• Demand sensing
• Trade promotion management
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KEY STEPS OF
DEMAND PLANNING
• Organizing and preparing data
• Making a preliminary forecast
• Integrating market data
• Reconciling bottom-up and top-down
forecast
• Developing a final forecast
• Using analytics to monitor project
performance
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REVERSE LOGISTICS
Reverse logistics refers to the supply chain process
of returning products from end users back through
the supply chain to either the retailer or
manufacturer. Whether the customer is returning
items they don't need, the end of the product life
cycle has been reached or the product is damaged or
flawed, it's simply good business to offer returns to
your customers, and that's where reverse logistics
comes into play.
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• Return management
The most common reverse-logistics process, returns management, deals
with regular customer returns and should represent a seamless, hassle-free
experience in order to boost customer loyalty and brand image.

• Return policy and procedure

This is the policy against which all customer returns are measured, and it
should be followed consistently by both customers and employees alike. It's
good practice to keep these policies visible and easily accessible to
customers.
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• Remanufacturing or refurbishment
Reconditioning products that are returned prevents organizations and
retailers from forfeiting profit (or losing money) on defective products
while eliminating unnecessary waste.

• Packaging management
Organizations with packaging management processes are able to reuse
packaging in order to reduce waste and save the cost that would otherwise
be spent on new packaging for returned items.
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• Unsold products
Directly focused on returning items from end users or fulfillment centers
back to manufacturers, the process of returning unsold products is
commonly the result of delivery refusal, poor sales or could involve other
factors.

• End of service life

Some products need to be returned at the end of their useful life in order for
manufacturers to manage their proper environmental disposal.
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• Delivery failure
If products cannot be delivered, they are returned to fulfillment centers
where they may be shipped back to the manufacturer, however, it's possible
for efficient organizations to manage delivery failure by correcting the issue
and resending.

• Rental Equipment
Rented or leased products are returned at the end of a defined term and
sent back to the manufacturer for either disposal, recycling or
redeployment.
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• Repair and maintenance

Such as in the case of many consumer electronics (laptops, for example),
products may be returned to have repairs or warranty work performed.

The reverse logistics process

The process used to manage the return of goods depends on the type of
reverse logistics in question as well as the type of business the organization
operates and in which industry.
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1. Process the return

When customers initiate a return, the organization must then
initiate the return process and put their standard operating
procedure in motion.

2. Determine the return category

. Upon return, products need to be inspected in order to
determine where they should be placed next in the process. Once
a product is returned there are a few options for next steps.
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3. Move product to reduce waste

. Continuously keeping returned products in motion can help
to reduce the amount of waste produced when products sit for
lengthy periods.

4. Execute the repair process

Repairable items should be repaired quickly and reinstated
into the organization's inventory or disposed of if they are
irreparable.
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5. Recycle items that cannot be repaired or resold

If it can't be fixed or parted out, it must be disposed of in the
correct fashion. Organizations must do their due diligence when it
comes to recycling and disposing of items that cannot be
repaired.
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• Returns
• Recalls
• Repairs
• Repackaging
• Recycling
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THE GOAL OF SUCCESSFUL

REVERSE LOGISTICS
Regardless of the type of organization you represent, optimizing
your reverse logistics can provide beneficial outcomes for both
you and the environment. The goal of successful reverse logistics
is to keep products moving in circularity so that manufacturing,
distribution, shipping and delivery, returns, repairs and disposal
can all remain in sync as part of a constantly spinning model of
efficiency.