What does 'Demand Forecasting' mean?

Demand forecasting is a critical feature of demand planning software that enables businesses to predict future customer demand for products or services based on historical data, market trends, and statistical analysis. This functionality helps organizations make informed decisions regarding inventory management, production planning, and resource allocation. By leveraging demand forecasting, companies can minimize stockouts, reduce excess inventory, and optimize supply chain operations. Accurate forecasts also support better financial planning and help businesses respond proactively to market fluctuations. Demand forecasting enhances overall operational efficiency and profitability by providing actionable insights that align supply with anticipated customer needs.