Why you need to forecast in your supply chain
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By Morgan International Staff Writers
Forecasting is vital to every industry- knowing what your company’s future will look like is the key to planning your strategy and future success. Forecasting in supply chains is no different, and below are a few reasons you should definitely consider demand, supply and price forecasting:
- Customer satisfaction- Ultimately, the customer is always right. Increasing customer satisfaction by forecasting what customers will want is vital to business success.
- Stock control- Doing regular warehouse audits keeps your inventory team happy. Demand forecasting helps to time purchases for when the sales come in.
- Reducing product costs- When looking at products, it should be looked at on how to reduce costs. You should identify and then remove obsolete products from the inventory. This will in turn reduce costs, and improve your demand forecasting.
- Improving shipping management- Looking forward and predicting the volume of orders helps management personnel expectations and capacity. Having capacity means that orders can be met on time and customers will stay happy.
- Sales and marketing- understanding promotions and pricing both up and down the supply chain means you can plan your marketing strategy effectively and forecast price changes.
You don’t need sophisticated technology and algorithms to forecast. However, you must be aware of what’s going on in your supply chain and undertake regular warehouse audits. To learn how to do this effectively, check out our courses. https://www.morganintl.com/cscp/#