Demand Planner vs. Production Planner: What Are the Differences?

A career in planning can be both challenging and rewarding. Two common positions in this field are that of a demand planner and a production planner. Though these roles share some similarities, there are several key differences between them.

In this article, we discuss the differences between a demand planner and a production planner, and we provide additional planning professions you may be interested in pursuing.

What is a Demand Planner?

Demand Planners work with sales, marketing, and operations teams to forecast future customer demand for a company’s products or services. They use statistical analysis and market trend data to develop long-term demand plans that balance supply and demand. Demand Planners work closely with production planners to ensure that the correct level of inventory is available to meet customer demand. They also develop contingency plans to address potential disruptions in the supply chain. Demand Planners typically have a bachelor’s degree in business, economics, or a related field.

What is a Production Planner?

A Production Planner is responsible for the creation and maintenance of production schedules. They work closely with production managers to ensure that all materials, equipment and labor are available when needed. Production Planners also track production progress and revise schedules as necessary to accommodate delays or changes in demand. They may also be responsible for forecasting future production needs and ensuring that the necessary resources are available. Production Planners typically work in manufacturing or industrial environments.

Demand Planner vs. Production Planner

Here are the main differences between a demand planner and a production planner.

Job Duties

Production planners typically focus on the logistics of production, such as locating and managing resources. They may work with engineers to determine the most efficient way to produce a product and communicate that information to other employees.

In contrast, demand planners research customer needs by studying data like sales figures and demographic information. They then use this information to advise production planners about future production requirements. Together, these planners can help companies adjust their production schedules to meet customer demands.

Job Requirements

Demand planners and production planners typically need a bachelor’s degree in business administration, industrial engineering or another related field. Some employers prefer candidates to have a master’s degree as well, but it is not required for entry-level positions. Additionally, many demand planners and production planners pursue certifications through the American Production and Inventory Control Society (APICS) or the International Society of Logistics (SOLE). These organizations offer training programs that teach professionals how to use planning software and other tools they might need on the job.

Work Environment

Production planners typically work in manufacturing facilities, where they collaborate with production teams to ensure that the facility runs smoothly. They may also travel to different locations to meet with clients and vendors. Demand planners usually work in offices or other business settings, such as marketing departments. They may also visit clients’ businesses to understand their needs and requirements.

Skills

There are several similarities in the skills used by demand planners and production planners. Both roles require excellent organizational skills to keep track of inventory levels, production schedules and customer orders. They also both need to have strong analytical skills to be able to forecast future demand and identify trends that could impact production.

However, there are some key differences in the skills needed for these two roles. Demand planners typically need stronger communication skills as they work with sales teams and customers to understand their needs and ensure that production can meet demand. They also need to be able to think creatively to come up with solutions to problems that may arise. Production planners, on the other hand, need to have strong project management skills to coordinate all aspects of production, from ordering raw materials to scheduling workers’ shifts. They also need to be able to troubleshoot issues that may occur during production.

Salary

Demand planners earn an average salary of $71,767 per year, while production planners earn an average salary of $67,127 per year. Both of these salaries may vary depending on the size of the company, the location of the job and the level of experience the planner has.