High Tech demand planning is characterized by supply and demand behavior of equal size players.
Information is shared dynamically across the high tech value chain to improve demand forecast ability. It is also driven by perishable technology and products with short life cycles.
The High Tech value chain includes the consumer, the retailer (both online and big box), the major OEM manufacturer, the major component manufacturer, and their own material suppliers. The final consumer demand at the retail or E-commerce level drives the entire High Tech value chain. The consumers buying decisions are influenced by macro marketing promotions such as TV and newspaper ads, retail tactical promotions, and seasonality. Retail-level tactical promotions involve collaborations between retailers and the OEM manufacturer. Consumer demand for high tech products can fluctuate between different time frames such as the increase in laptop purchases during back-to-school and Christmas seasons.