Supply Chain Forecasting Definition
Supply chain forecasting is the process of estimating future demand for a company’s products or services. The forecast is based on past sales data, market trends, and other factors that may affect future demand. The goal of supply chain forecasting is to provide accurate information to businesses so they can plan production, inventory, and other resources accordingly.
Forecasting is a critical part of supply chain management, as it allows businesses to make informed decisions about where to allocate resources. An accurate forecast can help a company avoid stockouts and excess inventory, both of which can lead to lost sales and revenue. A good forecasting system will take into account all relevant factors that could impact demand, including seasonality, economic conditions, customer trends, and promotional events.
Supply chain forecasting is not an exact science, and there will always be some degree of uncertainty when predicting future demand. However, by using historical data and analyzing current trends, businesses can develop an accurate forecast that will help them stay ahead of the competition and keep their customers satisfied.
