What is Demand‐Driven Forecasting?

Companies with the best intentions are still having problems generating accurate demand forecasts. It continues to be one of the most sought after objectives for improving supply chain management. As a result, companies have ignored demand forecasting as they have chosen to improve upstream efficiencies related to supply-driven planning activities. It has become clear that demand forecasting affects almost every aspect of the supply chain. Now that many companies have solved the upstream planning inefficiencies there is a renewed focus on improving the accuracy of their demand response. This chapter provides a structured framework to transition from being supply-driven and becoming demand-driven with an emphasis on customer excellence, rather than operation excellence.