Importance of Accurate Demand Forecasting

Accurate demand forecasting is crucial for optimizing inventory levels, reducing stockouts, and minimizing excess inventory. Logistics managers must utilize historical data, market trends, and predictive analytics to anticipate customer demand accurately. By implementing robust forecasting techniques, managers can align supply with demand, ensuring timely product availability and efficient resource allocation. Accurate demand forecasting enhances supply chain responsiveness, reduces operational costs, and improves customer satisfaction, making it a vital component of successful logistics management.