Joint demand planning is a collaborative process between partners in a supply chain—such as manufacturers and retailers—to align forecasts and inventory strategies. It seeks to reduce inefficiencies caused by isolated forecasting and promotes shared visibility into actual and anticipated demand. By collaborating on demand signals, companies can reduce the bullwhip effect, prevent overproduction, and ensure better service levels. This is particularly useful during promotional periods or for products with high variability in demand. AI-enabled systems enhance joint demand planning by integrating real-time data from multiple stakeholders and generating consensus forecasts. This leads to optimized inventory placement, reduced stockouts, and improved supply chain trust and performance.
