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Why is demand planning important? Demand planning is a way to make the supply chain management process work its best for the company. Companies need to know what to produce. The best way is to meet the future demand is using a multi-step process called demand planning. Demand planning is an important process to know what to produce and to ensure that there is a demand.

A supply chain is a chain of services, materials, and information from suppliers through a company to its customers. In this chain, raw material is made into a product by several companies, and/or services are provided. Within the supply chain, cooperation between all parties is necessary to work as efficiently as possible. Supply chain management is about creating and managing the goods, materials, and information in this chain.