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Improved supplier relations and purchasing

terms: Demand Forecasting drives the raw material

planning process which facilities the Purchasing

Managers to release timely purchase plan to suppliers.

Visibility and transparency of raw

material demand improve supplier relations and
empowers Purchasing Managers to negotiate favorable

terms for their companies.

Better capacity utilization and allocation of

resources: Based on the current inventory levels, raw

material availability and expected customer orders,

production can be scheduled effectively. This

leads to improved capacity utilization and judicious

allocation of manufacturing resources.

Optimization of inventory levels: A proper Demand

Forecast provides vital information for driving the

desired raw material, WIP and finished goods inventory

levels. This reduces the Bullwhip effect across the Supply

Chain, leading to optimization of inventory levels and

reduction in stock-out or over-stocking situations.

Improved distribution planning and logistics: Apart

from small businesses, this is particularly evident in

businesses dealing with multiple SKUs and wide

distribution networks. Distribution and Logistics

Managers are enabled to balance inventory across the

network and negotiate favorable terms with

Transporters.
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