Demand driven supply chain planning is the foundation of any company's success, as it provides a framework within which to plan for the constant flow of materials and labor into the production site. The challenge faced by many companies seeking to improve their bottom line is not so much of the process itself, but more of the reaction to that process. Demands can come in the form of unexpected problems, overloading of the facility, or sudden fluctuations in consumer preferences. While these events can cause significant problems to a company's revenue and organizational structure, they often do not rise to the level of a failure of quality or service.

When problems do occur, the first instinct of many companies is to pull back and cut corners elsewhere. However, if demand driven supply chain skills are applied consistently, then problems will be minimized and customer satisfaction dramatically improved. This method relies heavily on accurate, up-to-date information and tools, and should be administered in a manner that maintains clear communication between all stakeholders. Clear communication is crucial to the success of any plan, as it ensures that the plans are executed as intended. Active demand planning includes clearly defined objectives, detailed strategy planning, clearly defined steps, and agreed upon deadlines.

Planning should include an initial discussion of the issues most likely to affect production and staff. These might include financial issues, employee theft, or supplier reliability. Once these concerns have been identified, it is time to develop a plan for addressing them. A management plan should detail what personnel are assigned to handle each issue, how departments will coordinate with each other, how the problem will be handled once it has been identified, who is responsible for communicating the plan to all affected parties, and what formal procedures will be used once the problem has been addressed. A well-designed plan will reduce the time required to resolve common problems and will increase the company's efficiency.

The next step in the process is to determine when each department should implement its part of the plan. If steps are not fully implemented before a specific deadline, then this aspect of the planning process will be considered incomplete. Steps should be designed to make the least amount of impact on the other departments, and should be reviewed periodically to see if they are still relevant and useful to the company.

The third step is to determine when each department should begin implementing part of the plan. If this is not part of the original plan, then the implementation may have to be delayed. Every aspect of the plan should be addressed, from inventory levels to order processing times. This step should include an assessment of the plan's goals, a description of the process to accomplish each goal, and any risks to the plan's success.

Once the objectives of each step in the process are determined, they can be reorganized in the order that they were initially defined. This reorganization should be done in accordance with the current order of tasks. Order processes should first be completed, including the scheduling of raw materials, working capital, and transportation. Real time inventory tracking should be integrated into the supply chain. Finally, once all aspects of the plan are executed, a status report should be issued to indicate the progress of each department.