Demand Forecasting
Demand Forecasting is the procurement capability of predicting future requirements for goods and services, based on historical data, market trends, and business growth. It aids procurement by providing anticipatory information for making strategic sourcing decisions, optimizing stock levels and minimizing supply chain disruptions.
Level 1: Emerging
At an emerging level, you are beginning to grasp the concepts of demand forecasting within a procurement environment. You’re learning how to predict future needs and plan procurement strategies accordingly.
Level 2: Proficient
At a proficient level you are able to accurately forecast demand for procurement needs, utilizing historical data, market trends, and understanding of organizational requirements to optimize inventory levels and minimize costs.
Level 3: Advanced
At an advanced level you are able to utilize sophisticated statistical models and advanced technology to accurately forecast demand, allowing you to strategically optimize inventory levels and minimize procurement costs effectively.
