Supply Chain Forecasting - What is the need?

What is Supply Chain Forecasting?

Supply chain forecasting is ascertaining the demand, supply, and pricing for a product or a range of products. Organizations use supply chain forecasting models to analyze customer and vendor data to help ascertain a product's ideal price. 

While determining forecasting models in the supply chain, it is extremely important to consider external factors like weather, disruptive events, or any other unforeseen circumstances to boost the accuracy of the price determined. Poor forecasting may lead to higher inventory volumes and carrying charges, poor customer service as inventory is misallocated across locations and products, and excessive safety stock levels. For companies that are serious about better inventory management, improving the quality of product forecasts, like improving record integrity, is an ideal place to start.

Companies are now using AI-powered supply chain forecasting to cut down on costs and time involved in the forecasting process. These platforms can assess huge volumes of data quickly and offer meaningful insights to create a flexible and reactive supply chain that can withstand any predictable and unpredictable changes in the supply chain.