Career Definition of a Demand Planning Analyst
Anyone who has gone to a store looking for a seasonal item that isn't available has experienced what happens when there's a breakdown in demand planning. Demand planning analysts help determine the volume of different types of products needed at different times of the year in order to satisfy consumer demand. To do this, they need to collect a lot of information. They track economic factors and look at things like shipping records. When possible, analysts may consider things like pre-orders for a product not yet released. They also factor in marketing plans and product promotions to determine how product demand will be impacted.
To develop projections for demand, they gather and analyze relevant information and use statistical data to perform applicable calculations. Part of the work of demand planning analysts involves communicating with people in multiple departments before they've made their projects and after. They are responsible for ensuring that the appropriate departments are informed of their demand projections so that enough products can be made and shipped to each region. They also help develop strategies for eliminating stock of merchandise that has been discontinued.
|Educational Requirements||Bachelor's degree|
|Job Skills||Written and oral communication, computer literacy, analytical skills, mathematical skills, organization, attention to detail, team player|
|Median Salary (2018)*||$58,900|
|Job Outlook (2016-2026)**||23% (market research analysts and marketing specialists)|
Sources: *PayScale.com; **U.S. Bureau of Labor Statistics
In order to be considered for opportunities as a demand planning analyst it's necessary to have a bachelor's degree in a relevant discipline. Employers typically look for applicants who have studied logistics, supplied chain management or related fields, such as business. Computer skills are also important and those interested in this profession should be capable of demonstrating experience with programs such as Excel. Since mathematical skills are important for demand planning analysts and they need to work with statistical data, they should plan to take college courses in math and statistics.
Communication skills are important for demand planning analysts because their work involves communicating with different staff in multiple departments. They also need to be able to present their conclusions effectively, so they need both communication and interpersonal skills. Strong analytical skills ensure that they can process relevant data, and strong mathematical skills are needed to perform calculations. Demand planning analysts use their attention to detail skills to confirm that all factors that are relevant to a product's demand level are considered. Teamwork skills are also important because they must be able to work with people from different divisions of the company to make sure they have the information they need to meet production and shipping targets.
Career Outlook and Salary
PayScale.com reported that as of January 2018, demand planning analysts took home a median income of $58,900 per year. The U.S. Bureau of Labor Statistics (BLS) reports that from 2016 to 2026, the average rate of job growth for all occupations will be 7%. During this time, the BLS forecasts that market research analysts will see a high 23% rate of job growth. Demand planning analysts are grouped with market research analysts because market research analysts also help determine the level of demand for goods and services.
If a career as a demand planning analyst sounds appealing, then you may also be interested in other business-related careers that involve using similar skills. Learn more about related careers through the links listed below.