What is Demand Forecasting?
Demand forecasting involves estimating future customer demand for products and services and is a key aspect of an efficient and productive supply chain and successful retail operation.
Why is Demand Forecasting important?
Demand forecasting is important because retailers and consumer goods companies need to make critical inventory and capacity planning decisions that balance avoiding stockouts and oversupply. Highly accurate demand forecasts aided by AI and the use of advanced capabilities such as copilots are essential for matching supply with demand to avoid shortages or excess inventory as they inform decisions related to production, procurement, and replenishment plans across the supply chain.
