Overview
Supply chain forecasting is an analysis of the supply chain with the goal of being able to predict the performance of the supply chain, especially under various circumstances, and the variance around those forecasts. The fulfillment process represents a key component of operational risk (see also enterprise risk).
Prompt fulfillment may be considered as a key aspect of customer value, and thus needs to be monitored and managed.
Forecast Factors
The following represents a set of factors that can influence the outcome of a supply chain process.
- Demand - forecasting demand is critical to forecasting the performance of the supply chain in meeting that demand. Demand forecasting is typically considered as a function of the marketing department and is treated at forecasting demand.
- Inputs - disruptions in the delivery of inputs to a supply chain can disrupt the entire process.
- Performance - the performance of a supply typically does not need forecasting, as it can be measured. However, understanding how the process would perform under various circumstances and the risks involved can be teased out using process simulations