Question

What role does demand forecasting play in Starbucks supply chain strategy?

Answer 1

Demand forecast helps in determining the forecast on demand of their products across region or across stores. It helps in building stratgy and play vital role in decision making about their approach towards product and services. It play important role in procurement numbers of their raw materials, expected footprints of customers, changing market demand for their products etc. It reduces risk in planning and operations and also enhance the effectiveness of building vital stratgies and objectives. It guides the senior management to focus on the core competencies and expansion scope of their market. It can reduces the overall operational cost and estimating the resource requirement.