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Combine intel on past demand for products and services with market conditions to forecast future demand. Use this as an input for production planning, capacity planning, facility layout planning, marketing activities and inventory management.

Methods to Forecast Demand

Consolidate Spend at a Group level

Quantitative Forecasts

The simplest method to forecast demand, known as the Trend Method is to assume that ceteris paribus, the demand pattern over the past few time periods, will be the pattern of growth in the future. A more comprehensive approach is to define a relationship between various factors affecting the demand such market conditions, income and demographic conditions from the target segment and seasonal trends to forecast the demand.

Monitor supplier performance over time

Qualitative Forecasts

More approapritely used when the offering is new to the market and previous data is not available, customer surveys on what they intend to buy and how much they are willing to spend on it, from sales persons on the expected sales in their area and corresponding cumulation or market and expert surveys can be ways to predict demand


Adhere to the 80:20 Ratio

Production Planning

Ensure regular supply of raw materials in the production process by forecasting demand at product, variant and location level. Centre your production and transportation schedules around the forecast levels so as to minimize the gap betwee demand and supply. Ensure enough working capital proactively so as to keep the production process uninterrupted.
Cost Savings

Inventory and Logistics Management

Both overstocking and understocking of inventory can lead to associated costs and loss of business. Achieve optimal inventory levels at different points of time and for different products and raw materials. Use demand forecasts as an input to the transportation strategy to identify areas where efficiencies can be increased and redundancies eliminated.
Improved Compliance

Workforce Optimization

Set targets of sales persons by product and location basis the forecasted values. Plan your on floor workforce based on production schedules keeping in mind seasonality and demand fluctuations.