The forecasting of demand is fundamental to many commercial and operational decisions. It facilitates critical business activities such as financial planning, sales and marketing plans, material requirement planning, and production planning to name a few. Poor forecasting creates no end of issues in any supply chain.
The design and operation of the demand forecasting and planning process, including roles and responsibilities, systems, and required skillsets, should promote accuracy and, critically, reduce bias. The consistent generation of a reliable, data-driven, statistical forecast will help to drive supply chain and financial efficiencies.