Demand Forecasting - A Beginner's guide
Demand Forecasting Principles
Updated on Sep, 2023
Language - English
What Is Demand Forecasting? And Why It Is Important For Your Business
Demand forecasting, also known as sales forecasting, refers to the process of making estimates about future customer demand over a certain time period. It uses historical data along with other information.
When demand forecasting is correctly implemented, businesses have valuable information about their potential in the current market as well as other markets so managers can make informed decisions about business growth strategies, pricing, and Market potential.
Failing to use demand forecasting puts businesses at risk for making poor decisions about their target markets and products. These ill-informed decisions can have far-reaching effects on customer satisfaction, supply chain management, inventory holding cost, and ultimately profitability.
Reasons Why Demand Forecasting Matters
There are many reasons why demand forecasting is an important process for companies:
- With sales forecasting, businesses have information to assist with planning, goal setting, and budgeting. With a good understanding of what your future sales may look like, it’s possible to build and inform procurement strategy to ensure your supply matches customer demand, at the specific product level.
- Organizations can more effectively optimize their inventory levels, increase inventory turnover rate, and reduce holding costs.
- With sales forecasting, businesses are also able to identify and rectify any issues in the sales pipeline ahead of time to keep business performance studies throughout the entire period. In terms of inventory management, most e-commerce business owners know that too little or too much inventory can be detrimental to operations.
- Demand forecasting provides insight into your upcoming cash flow so businesses can more accurately budget payments for suppliers and other operational costs, while still investing in the growth of the business.
- Anticipating demand means knowing when to increase staff and allocate other resources to ensure operations run smoothly during peak activity periods.
Who this course is for:
- Beginner Supply chain management
What will you learn in this course:
Get a introductory knowledge
Useful for all professionals
Basics of excel
Basics of Mathematics
What are the prerequisites for this course?
Basic English and Mathematics
Check out the detailed breakdown of what’s inside the course
- Intro 15:31 15:31
What can be Forecast?
Plan & Goals
Delphi & other methods
Winters & ARIMA Intro
Pattabhi RamanExp. Supply Chain Professional, APICS- CPIM, CSCP, CLTD
Founder & Chief Consultant at Exxpert SCM, Bangalore
* Organizational experience of 25 years
* APICS Certified: CPIM, CSCP, CLTD, DDI Certified - DDPP, ISM Certified - CPM, PMI Certified - PMP
* Analytics qualified, Expert in Supply Chain Analytics
* Trained for Training(Train the Trainer)
# All above 4 qualities make a perfect Supply Chain Trainer, which is possible with only trainers globally
He has wide experience of three decades in the manufacturing sector comprising automotive, and machinery.
He has worked in India and Abroad in MNCs such as BOSCH, WABCO, VISTEON, and BIESSE. He has held various senior positions in the supply chains such as GM – Supply chain, GM – Material Planning, and Logistics.
He has led and managed large teams of supply chain professionals specializing in areas such as warehouse and distribution management, logistics management, and material planning. He has successfully implemented various supply chain processes, optimization projects, ERP implementation projects, cost-saving projects, etc.
Last 5 years, he is heading the current organization, providing both consulting & training. One of the popular program is "Supply Chain Analytics" which has the global audiences and appreciated by peers.
Our organization provides both live and self paced programs
User your certification to make a career change or to advance in your current career. Salaries are among the highest in the world.
Our students work
with the Best
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