Forecasting in supply chain management is the process of predicting future demand for products and services. It involves the use of statistical analysis and other techniques to identify trends and anticipate future demand. By accurately forecasting future demand, companies can better plan their supply chain operations and make sure they have the right amount of inventory to meet customer needs. This helps them to avoid overstocking, which can lead to increased costs, and understocking, which can lead to lost sales. Forecasting also helps companies to better understand customer preferences and anticipate future trends in the market. Ultimately, forecasting in supply chain management helps companies to maximize profits and minimize costs.
