Supply Chain

Product Segmentation and Demand Policy

Creating demand forecasts for large product mix is an onerous task. Organizations, that plan demand for a large number of products across multiple customer locations, find it difficult to focus their efforts on a few product-customer combinations that truly require collaboration. In reality, not all products require Plan Collaboration. There are products that have steady coherence to statistical forecasts and their forecasts can simply be trusted. Then there are products that are slow moving or low margin where spending precious collaboration time is unnecessary. The challenge however is to identify these products quickly and put them into separate policy buckets.

This is where a Demand Policy based Product Segmentation comes to rescue and helps you generate more impact for the efforts invested on collaboration. This Demand Policy app by Valizant helps you to classify your product mix into three segments and assign an appropriate planning policy to each set of items. The segments are:

1. Collaboration - Items with high demand volatility and high revenue impact.

2. Forecast - Items with consistent demand pattern and high revenue impact.

3. Stock - Items that are either inexpensive or slow moving or low revenue.

It is important to review product mix periodically since demand patterns and market conditions change over time. Since the rules of segmentation are configurable and reclassification can be performed by the click of a button, this app becomes a very convenient tool for demand planners and product managers who own a very large product mix.


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Why Anaplan for Product Segmentation and Demand Policy?

Take charge of your Demand Plan. Narrow down the list of collaboration planning items and direct everyone’s efforts on those few items. Generate more impact for the efforts invested on collaboration. Simplify the planning process by reducing unnecessary review meetings.
New product introductions, market expansion goals and competitive strategy play a big role in Demand Planning apart from Revenue and Margins. Incorporate the parameters that are significant to your business in a comprehensive demand policy that is also highly executable.
Set ground rules for classifying all your catalog items into collaborative planning, forecast driven planning and stocking policy based planning. Use Demand Volatility, Revenue, Cost, and Lifecycle stage as parameters to determine appropriate policy. Make the policy visible to Planners.
Review your product mix quarterly or once in every 6 months, to factor in changing market conditions. This simple to configure and easy to use app will make it possible for you to refresh and realign even very large product catalogs.


Configurable Demand Policy rules for product segmentation
  • Create comprehensive Demand Policy rules based on product lifecycle attributes, sales revenue or forecast variability information and segment products into multiple planning buckets, example – Collaboration items, Forecast items and Stock items.
Policy based segmentation engine
  • Run demand policy rules on actual business data and narrow down the product mix that requires intensive plan collaboration. Focus your collaboration efforts on this segment. Segregate catalog items where forecasts are reliable or stocking policy is sufficient from the collaborative planning efforts.
Policy review
  • Review the products listed under each segment and review their population with respect to their revenue contribution. Adjust policy parameters if necessary and review how the segmentation changes. Iterate till you see a meaningful segmentation of products.
Policy override
  • Override the segmentation rules in the Demand Policy for any strategic reasons and review changes in segmentation.
Review cycles and reclassifications
  • Undergo a formal review cycle of the finalized product mix by segments. Continue the process periodically to reflect changes in the marketplace.


Valizant helps companies accelerate their journey to market-leading performance through improved alignment and effectiveness. Our mission is to help companies realize value from each segment of their journey through our coaching, consulting, solution design and implementation services.

We take a holistic approach which includes the functions - product, sales, marketing, operations and finance - and dimensions - people, process, data and technology - necessary to achieve that goal.

Our Road to Performance enables customers to minimize risk, accelerate time to value and retain flexibility throughout the journey with our agile methodology.


235 E. Broadway

Long Beach, CA 90802

United States


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Terms and conditions


Application Terms and Conditions: BY CLICKING TO PROCEED WITH DOWNLOAD OF THE APPLICATION, YOU ACKNOWLEDGE THAT THE TERMS BELOW SHALL GOVERN YOUR ACCESS AND USE OF THE APPLICATION. IF YOU DO NOT WISH TO BE BOUND BY THESE TERMS, DO NOT CLICK TO PROCEED. THIS APPLICATION IS NOT PROVIDED BY ANAPLAN, INC. AND THESE TERMS ARE NOT OFFERED BY ANAPLAN UNLESS ANAPLAN IS NAMED AS THE PROVIDER ON THE DOWNLOAD PAGE. USE OF THIS APPLICATION REQUIRES A VALID SUBSCRIPTION TO THE ANAPLAN HOSTED SERVICE, WHICH IS ONLY AVAILABLE THROUGH A SEPARATE AGREEMENT BETWEEN YOU AND ANAPLAN. Application Provider. The application named on the download page of the Anaplan App Hub (the “Application”) is provided by the party named on the download page (the “Application Provider”). Anaplan, Inc. (“Anaplan”) is not the Application Provider unless named as such on the download page. Terms and Conditions. This agreement (the “Terms”) contains the terms and conditions governing your use of the Application unless you have separately agreed to other terms with the Application Provider. These Terms are entered into solely between you and the Application Provider and shall become effective upon your download, access or use of the Application. Anaplan is not a party to these Terms unless it is the Application Provider. Grant of Rights; Anaplan Agreement. The Application Provider hereby grants you the nonexclusive, nontransferrable, nonsublicensable right to use the Application solely in connection with your authorized use of the Anaplan hosted service (the “Anaplan Service”). Your right to use the Application does not include the right to use the Anaplan Service, which requires a separate agreement between you and Anaplan (an “Anaplan Agreement”). You are not permitted to copy or redistribute the Application, but you may load the Application into your instance of the Anaplan Service and modify the Application in connection with your permitted use of the Anaplan Service. Evaluation and Production Use. Your right to access and use the Application is provided on a temporary basis and is limited to evaluation use for a thirty (30) day period beginning on the date of download (“Evaluation Period”). If your subscription under the Anaplan Agreement includes the right to use the Anaplan Service for the use cases covered by the Application, then you may use the Application for production purposes after the Evaluation Period, or earlier if the Application Provider agrees. If you do not have an Anaplan Agreement that includes your right to use the Anaplan Service for the use cases covered by the Application, then your right to access and use the Application will automatically terminate at the end of the Evaluation Period without notice from the Application Provider or Anaplan. Reservation of Rights. The Application contains valuable intellectual property rights of the Application Provider and you are not permitted to use or exploit such intellectual property rights except as explicitly permitted in these Terms. The Application Provider reserves all right, title and interest in the Application except for the rights explicitly granted to you in these Terms. Your right to use the Application will terminate immediately upon any breach of these Terms by you, or upon the termination or expiration of your Anaplan Agreement. Either party may terminate these Terms at any time in its discretion by providing the other party with notice, at which time your right to access and use the Application will terminate immediately.

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