Question

How is forecasting in the context of a supply chain different from forecasting for just a single organization? lists possible supply chain benefits and discuss potential difficulties in doing supply chain forecasting?

Answer 1

A supply chain is a group or combination of various members like the retailers, distributors, and etc who works together with the target of delivering a final product to a customer. I believe that a poor forecast for a supply chain could be easily managed by other members in the group because of the cancelling effect and the damages done are absorbed by the others in some way. However in the case of a single organization, if the forecast fails they have to manage it internally with no other resources therefore it is more difficult.

 

Possible benefits of an effective supply chain management are:

Achieves more accurate information together with the ability to carry out better sales forecasting. Other benefits include creating stronger partnerships and supplier networks, balancing out supply and demand, improving business plans and working strategies, predicting transportation requirements, scheduling daily operations of the company, making streamlined inventory management and reducing irrelevant elements.