Supply Chain Management – Demand Analysis

DEAR STUDENTS You are able to learn – DEMAND FORECASTING Demand forecasting is a means of estimating what customer demand will look like in the future, and how it will affect your business’ supply chain. Demand forecasting plays an important role in effective supply chain management, ensuring timely stock replenishment, enhanced capacity management, and optimal sales and revenue. It also improves decision-making and management, while accelerating prospective plans for growth and expansion. BENEFITS OF BUSINESS: Reduced uncertainty – Uncertainty is always a negative when it relates to supply chain management. It hampers decision-making, causes delays, and impacts stakeholder confidence. Demand forecasting can remedy uncertainty, ensuring that supply-related functions are adequately resourced, and that managers are better informed to make effective decisions that encourage growth and progress. Enhanced supply infrastructure – Anticipating highs and lows in demand is essential for the health of your supply infrastructure. Demand forecasting supports enhanced supply chain management by optimising capacity, stock replenishment, and the streamlined management of warehouse personnel. Increased revenue – Understanding when products are likely to sell, and in what volumes, can lead to significant increases in revenue. Demand forecasting also means optimal product availability, so you never miss a sale. Reduced need for safety and surplus stock – The more inventory in your warehouse, the slower the turnaround of stock and the greater the impact on your bottom line. Demand forecasting reduces the need for safety stock, so you can cut inventory costs while focusing on the most profitable products. Improved fulfilment = better long-term customer advocacy – Demand forecasting means more of your products are available more of the time, which can be a huge boon from a customer advocacy perspective. Improving order fulfilment through accurate demand forecasting can encourage repeat customer and word-of-mouth recommendations, boosting your revenue and customer base. Why is demand forecasting important for modern supply chains? In the wake of the pandemic, companies are in an exceptionally fast-moving business climate. Customer behaviours and expectations are evolving quickly and as more and more businesses adopt optimised supply chain practices and cloud-connected business networks, competition is getting fierce. Demand forecasting is important to the supply chain because it helps to inform core operational processes such as demand-driven material resource planning (DDMRP), inbound logistics, manufacturing, financial planning, and risk assessment. How does demand forecasting work? At its best, demand forecasting combines both qualitative and quantitative forecasting, both of which rely upon the ability to gather insights from different data sources along the supply chain. Qualitative data can be curated from external sources such as news reports, cultural and social media trends, and competitor and market research. Internally-sourced data – such as customer feedback and preferences – also contributes greatly to an accurate forecasting picture.

Duration -2 Months

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