The importance of forecasting and the importance of structure in a demand planning process.
Companies seeking to transform their supply chain management will put Demand Planning or Forecasting near the top of their priority list. Those who don’t will use excuses such as “We know forecasts will be wrong” or “Ours is an industry in which it is impossible to forecast”
Yet, most businesses are driven ultimately by a series of planned sales numbers. Some, unfortunately, are driven by more than one set of numbers (e.g., production’s view of sales demand as opposed to marketing’s view). This article describes the importance of forecasting and the importance of structure in a demand planning process.
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