The role of forecasting in a supply chain

All push processes performed in anticipation of a customer demand whereas for pull process manager must plan for inventory and capacity. For example, Tata Motors, the automobile manufacturer from India, order auto components In anticipation of customer orders The company also uses its plant capacity to keep inventory at factory as well as at retailers’ location. The ordering a component is a push process whereas manufacturing and utilizing the capacity is a pull process. Now, MRF, supplier to the Tata Motors, also needs to forecast for its orders and capacity utilization. Thus each player is the supply chain forecast separately and that leads to mismatch in the forecasting. Hence modern Supply Chain management software and organizations consistently forecasting on using CPFR and block chain model. CPFR is collaborative planning forecasting and replenishment.

Let me explain with another example of Godrej a consumer goods company. The company has begun a project called ' Sampark' distribution management system used for stock management billing for customer and report generation. For this project implementation, Godrej has roped in carrying it Forward agents(C&F) agents, and distributors. This has eliminated Multi-point documentation done earlier. Further it also helped in regular replenishment, reducing the inventory and the better forecasting.

After the initial success of sampark, Godrej has launched two new projects called. Sahayoga and the sampoorna either. Godrej has helped the intermediaries to reduce their lead time, tracker orders and quick settlement of outstanding wherein sampark has implemented for retailers to track final customer orders.