We might be amid the largest drawdown in demand since the Second World War. Having experienced a new way of living, consumers are recalibrating their spending, increasing the likelihood that spending may permanently shift between categories and that online services could get adopted far faster. Every country is experiencing greater shifts in people’s daily behaviours. The resulting demand shock cuts global GDP growth for 2020 in half, to between 1 percent and 2 percent, and pulls the global economy into a slowdown, though not recession. In this scenario, a global slowdown would affect small and mid-size companies more acutely. Less developed economies would suffer more than advanced economies. Unsurprisingly, sectors will be affected to different degrees. Some sectors, like aviation, tourism, and hospitality, will see lost demand (once customers choose not to eat at a restaurant, those meals stay uneaten). This demand is largely irrecoverable. Other sectors will see delayed
Demand Forecasting is a fancy topic not just because it gives you psychic powers to know the future demand but also because it is an important part of the supply chain process since all the subsequent phases of supply chain are dependent on it. A key part of supply chain planning involves demand planning and the associated demand forecasting process. Forecasting is one of the three components of an organization - Demand Planning, Demand Forecasting and Demand Management process. Demand Planning helps us to find what we should do to shape and create demand for our product (Production, Packaging, Pricing, Planning, etc.). Forecasting helps us to find the upcoming demand and confirm whether a plan is in place to deliver. Demand management helps us to prepare for and act on the demand when it materializes (Sales and Operation Planning). Demand Supply Gap in Business