The question for business leaders though is whether or not they are keeping up with these advances. Three in particular merit special attention due to increased ability that companies now have to digest and interpret information.

Three Key Best Practices for Supply Chain Management

Forecasting and demand management is the first of these. Most companies need to forecast customer demand because their lead-time to their source of supply is longer than their customers will wait for product. They forecast at some aggregate level and then break that down as best they can using their own algorithms. They do it this way because it is near impossible to generate a forecast for potentially thousands of items.

A best practice is to let a computer make a statistical forecast for each item and then aggregate this demand for review and adjustment.

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