Model and parameter optimisation
Manage by exception
Monitor Forecast Accuracy
Life Cycle Management
Phase in with predecessors
Phase Out management
Add marketing intelligence
Forecasting is an imperfect science, but it is also a necessity for most businesses. That’s particularly true when it comes to supply chain management. Proper forecasting helps ensure you have enough supply on hand to satisfy demand. Business analysts use supply chain management systems and other tools to forecast demand weeks and months in advance.
Demand Forecasting facilitates critical business activities like budgeting, financial planning, sales and marketing plans, raw material planning, production planning, risk assessment and formulating mitigation plans. Outlined below are the impacts of Demand Forecasting on Supply Chain Management:
- Improved supplier relations and purchasing terms
- Better capacity utilization and allocation of resources
- Optimization of inventory levels
- Improved distribution planning and logistics
- Increase in customer service levels
- Better product lifecycle management
Within Supply Chain Management Demand Planning and Forecasting is the basis of all other Supply Chain Plannings. There are many techniques to optimize your forecast and your demand planning process.