Forecasting: it’s what’s hot in Supply Chain Analytics
Better Data, Better Forecasts
In the world of commerce, every business ecosystem has a type of supply chain that is critical to corporate operations. These supply chains rely on a network of plants and facilities to add value to and transform raw materials into a final product. Any disruption or sub-optimization in the supply chain can and will significantly impact a company’s profitability.
The ability to effectively forecast demand is essential for supply chain management decisions. In fact, demand forecasts are used throughout the supply chain including supply chain design, purchasing, operations, inventory, and sales and marketing. In large part due to computer processing power, new advances in forecasting and the abundance of new data sources have helped to increase forecast reliability. Value-add forecasting is one way companies are now realizing incremental improvements in their forecast quality and reliability.