Important Financial Metrics All Demand and Supply Planners Need to Know

As a person responsible for forecasting and demand management, you may wonder what you can do to improve processes. The fact is your job is to support the business decisions that are most essential to helping ensure your company is successful, which makes continued growth a possibility. Some important metrics you need to know and understand to achieve these goals can be found here.

Profit and Loss

These statements usually receive the most attention from those who are in charge of forecasting and demand management. This is because it shows the revenue, as well as the cost of the goods sold, and the period profits and costs of the company. All these results are displayed for the existing accounting period, along with the fiscal year to date. You can use the metrics displayed to determine many things and make predictions for the future of the company.


This refers to the shipment volumes that are monetized by the net purchase price charged for the actual profit. The actual cost of the goods sold include all of the prices and costs required to either produce or for the company to actually acquire the finished product in question. This includes both the indirect and direct costs related to the production of the item.

As you can see, when it comes to forecasting and demand management, there are more than a few factors that have to be considered. This helps ensure you get the information needed and are able to support the business decisions you make. All this is crucial for the success of any company that has hired someone for this role.


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