Understanding customer needs is essential in product-focused industries. Being able to predict customer demand will result in fulfilling orders with short lead times on time. This will also have the effect of increasing trust between customer and supplier. With this regard,

2.1 Describe the importance of demand forecasting for effective logistics management.

Notes

Students are required to describe the importance of demand forecasting for effective logistics management and how seasonality can affect a long-term forecast. The discussion/s must include aspects like, inventory management/availability, buffer management etc (be specific to critical activities of logistics).