To be successful, companies have to be efficient.

It's advantageous to create a large number of products and services to prepare for customer demand ahead of time. But when time isn't on your side, companies must be able to adapt at any given moment.

There is no advantage when supply is sitting in a warehouse because customer demand didn't match expectations. On the flip side, the last thing a company wants to hear is that they lost a customer because they simply could not provide the product or service due to a lack of inventory.

Some companies utilize demand planning software to automate this adaptation process.