Companies typically employ a team of demand planners who are responsible for coming up with the forecast. It can be time-consuming and resource-intensiveįorecasting involves a lot of data gathering, data organizing, and coordination. And in general, there is just an endless number of factors that influence demand.
Some products and markets simply have a high level of volatility. Even if you have a great process in place and forecasting experts on your payroll, your forecasts will never be spot on. Let’s face it: it’s hard to predict the future. Because you’re better able to predict what customers will want and when they’ll want it, you may also be able to decrease excess inventory levels, thus increasing overall profitability. When done right, anticipating demand will help you tweak your processes to increase efficiency all along the supply chain.
#ADVANTAGES AND DISADVANTAGES OF MANUAL LABOUR STAFFING DRIVER#
And self-reflection can be a powerful driver of company growth. But more than that, you’ll get into the habit of reflecting upon past performance as a whole. Your forecasts should eventually improve. It’s common to review where and why things didn’t happen the way you predicted. Even if your prediction was nowhere close to what ended up coming to pass, it gives you a starting point. You don’t start from scratch after each forecast. But more than that, it’ll give you insight into your company’s health and provide you with an opportunity to course-correct or make adjustments.
And in doing so, you’ll be able to anticipate demand fluctuations more effectively. You’ll gain valuable insightįorecasting gets you into the habit of looking at past and real-time data to predict future demand.
While we don’t believe they are obstacles to implementing a forecasting process, they should be weighed when considering which forecasting process is right for you. And in today’s ultra-competitive business landscape, any advantage over the competition is positive. That said, there are a few disadvantages that are worth exploring. But when done right, it can offer tremendous advantages to companies.
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