To ensure your eCommerce supply chain runs smoothly, you must ensure that all operations work efficiently. This means you must be on top of your inventory management to stock items regularly to ensure you never run out and face difficult situations. But, how can you know how much stock to order without knowing your sales? This is where the concept of demand forecasting comes into the picture.
Demand forecasting refers to understanding the customer demand in the future and how it will affect your supply chain. For example, if you had a great sale last month and understand that particular SKUs are working great for your business, you can estimate the demand shortly. Demand forecasting helps you analyze future demand based on historical sales data and current market trends so you can mold your business accordingly. Demand forecasting is an upcoming phenomenon that companies are deploying to enhance and optimize their supply chain. Let’s look at demand forecasting, the techniques to carry it out, and how it can help grow your business.
