Forecasting in supply chain is an essential component of successful supply chain management. It is the process of predicting future demand for goods and services based on past and current data. By accurately forecasting demand, businesses can ensure that they have the right amount of stock available to meet customer needs. This can help to reduce the risk of overstocking, which can lead to lost profits and wasted resources. Additionally, forecasting can help businesses to plan for future growth and anticipate changes in the market. By using forecasting to accurately predict demand, businesses can make better decisions about inventory levels, production scheduling, and pricing. Forecasting can also help to identify potential risks and opportunities, enabling businesses to make informed decisions about their supply chain strategy. Ultimately, forecasting in supply chain is a critical tool for businesses to maximize efficiency and profitability.
