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Dynamics 365 Supply Chain Management

Demand Planning

During my time at Microsoft FastTrack, I supported the team in creating Demand Planning and introduced it to more than 30 customers.

Ask about Demand Planning Back to the main page
Erol Čelebić
Where Demand Planning sits in Dynamics 365 Supply Chain Management: history and master data feed Demand Planning, the agreed forecast drives Supply Planning, purchase and sales orders execute against it, and what was actually sold returns as the next cycle's history. Your data History and master data Demand Planning Forecast, review, consensus Supply Planning Master planning, MRP Sales and delivery Orders and quotes

Demand planning in Microsoft Dynamics 365 Supply Chain Management is a separate application that runs next to Microsoft Dynamics 365 Supply Chain Management, with its own data model. It takes the sales history out of the ERP system or any other source system (47 Power Query sources, plus a direct connection to Supply Chain Management) and prepares a forecast, reviewed and agreed by the planners, that supply planning (master planning) can consume.

The app imports history from Supply Chain Management, Excel or CSV files and turns it into time series by day, week or month. It forecasts with statistical models such as ARIMA, ETS and Prophet, or lets a best-fit run choose the model for each series. Planners review the result in worksheets, change it at product group or region level and see the change spread down to every item. Versions and comments record who changed what. The agreed forecast goes back to master planning in Supply Chain Management.

Why Demand planning

Six features that make the difference in daily planning.

What it does

  • Runs auto-ARIMA, ETS and Prophet on every product and dimension combination and keeps the model with the lowest error.
  • Different products use different models inside the same forecast.
  • Short histories and intermittent demand get their own methods.
  • The accuracy page shows which model each series used and how far it was off.
Details on Microsoft Learn

Two Microsoft TechTalks on this module

Published by Microsoft, on Microsoft's own community platform, teaching Microsoft's own product. Both list me as FastTrack Solution Architect.

20 June 2024

Deep dive into Demand Planning for Dynamics 365 Supply Chain Management

The follow-up session: forecast models, data preparation, and how planners actually work with the results day to day.

Erol Čelebić · Anders Girke, Principal PM · Mostafa Mansour, Software Engineer · Peter Friis, Principal Engineering Manager

15 November 2023

Demand planning for Dynamics 365 Supply Chain Management

The introduction of the module to the Dynamics community: what it replaces, where it sits next to master planning, and what an implementation involves.

Beatriz Nebot Gracia, Product Manager II · Erol Čelebić, Sr FastTrack Solution Architect

What I take on

In the order they usually matter. Most engagements start with the implementation itself, because the decision for Demand Planning is already made.

  • Implementation and rollout From a blank environment to planners working in it: data model, hierarchies, the grain your history actually supports, and the rollout sequence that does not overwhelm the team.
  • Integration with Finance & Operations Historical demand out of F&O, forecasts back into master planning. The integration is where most Demand Planning projects quietly stall.
  • Forecast models and accuracy Model selection, seasonality, promotions and outliers, with an honest measurement of accuracy, so planners can see why the plan deserves their trust.
  • Enablement of your planners The module only pays off when the planners own it. Working sessions on their own data.
How Demand Planning connects to Dynamics 365 Finance and Operations Historical demand leaves Finance and Operations at the grain the history supports and enters the Demand Planning application. There a forecast model is built and the planners review and adjust it. The approved forecast returns to Finance and Operations, where master planning turns it into supply. The integration in both directions is where most projects stall. Finance & Operations Sales history, items, hierarchies Master planning Supply: purchase, production Demand Planning Forecast model, seasonality Planner review and override Accuracy measured over time Historical demand at the grain the history actually supports Approved forecast consumed by master planning where most projects stall
Two crossings, both of which have to hold before a forecast is worth anything.

Let's talk.

Erol Čelebić
D365 F&O Solution Architect
info@celerol.net

Independent and vendor-neutral. DACH and Europe. English, German.

A Demand Planning question

An implementation about to start, an integration that stalled, or forecasts nobody quite trusts. Tell me where it stands. The first answer costs nothing.

Ask about Demand Planning LinkedIn

Something broader than Demand Planning

Blueprint review, go-live readiness, or a project that has already slipped. That is the other half of what I do.

Implementation reviews