It is crucial that the firm place a higher importance on accurate demand forecasting as it is the bedrock of effective supply chain management for short-shelf life products. Organizations can precisely comprehend the pattern and forecast demand fluctuations by analyzing and utilizing the present and past data. It enables the arrangements of production schedules, distribution plans, and stock levels with projected demand. Moreover, the latest forecasting models consider several factors, such as the newest trend in the market, seasonality, and external influences, assisting organizations in arriving at informed decisions and reacting swiftly to changes.
Furthermore, forecasting plays a significant role in supply chain management, allowing firms to look into the future and forecast customer demand. As the market is dynamic, accurate demand forecasting is necessary for firms to avoid the unsuspected danger of stockouts and overstocks, smooth production handling, fewer lead times, and improve customer service levels.
Vipul Patel, Head of procurement, ADAMA India said "The supply chain industry is expanding rapidly as a result of increased demand, more visibility, and transparency of supply chain data and processes; this is being bolstered by rising retail and e-commerce growth"
Amazon has successfully leveraged the latest supply chain management technologies with extensively used demand forecasting and analytics to improve their inventory, distribution and delivery. They also use combination of data's and analytics to understand customer needs.