{"id":5066,"date":"2021-04-06T09:00:18","date_gmt":"2021-04-06T13:00:18","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=5066"},"modified":"2021-04-06T11:32:53","modified_gmt":"2021-04-06T15:32:53","slug":"the-art-of-electronic-components-supply-forecasting","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/obsolescence-management\/the-art-of-electronic-components-supply-forecasting\/","title":{"rendered":"The Art of Electronic Components Supply Forecasting"},"content":{"rendered":"

Electronic components supply forecasting is a true balancing act that, when done right, can lead to cost reduction, timely order fulfillment, and satisfied customers. Consider these areas when planning ahead for supply and demand of electronic parts.<\/p>\n\n\n\n

Electronic components supply forecasting<\/a>, when done skillfully, makes sure that the right number of parts are on hand, without saddling the organization with too much expensive inventory.<\/p>\n\n\n\n

If incoming purchased goods match the outgoing end product, then that critical balance has been achieved.  More art than science, forecasting can optimize the supply chain<\/a> in ways that cut costs,  increase efficiency, and generally improve business outcomes.   <\/p>\n\n\n\n

Qualitative or quantitative: What\u2019s the best method? <\/h2>\n\n\n\n

There are two inventory forecasting methods that procurement professionals can leverage to make solid forecasting decisions: quantitative or qualitative. Qualitative forecasting takes its cues from subjective opinions and insights, while quantitative forecasting leverages historical demand data to make an educated guess. <\/p>\n\n\n\n

Which is better?<\/strong><\/h2>\n\n\n\n

The answer is both. By using more than one method organizations can gain better insights into what\u2019s going on in their specific supply chain and in the general marketplace. Quantitative forecasting often uses past sales data (and the ability to make a prediction is only as good as the data\u2014so going further back in history is preferable). This method also takes into account factors such as demand trends and seasonality.  Qualitative forecasting, meanwhile, relies on educated deductions based on gathering information from both inside and outside of the organization.  Whenever possible it\u2019s good to pursue a hybrid model. <\/p>\n\n\n\n

Further, organizations should do both short and long-term forecasting of electronic components. Short-term methods look at roughly a calendar year and are critical to inventory planning, replenishment, and procurement. The short timeframe is subject to many variables such demand fluctuations and lean-time variations. Long-term demand forecasting, on the other hand, can be used in major strategic and investment decisions, such as new product planning. <\/p>\n\n\n\n

Electronic components supply forecasting by type <\/h2>\n\n\n\n

There are many types of electronic components supply forecasting that can help organizations improve business planning. Here are a few: <\/p>\n\n\n\n

  • Supply forecasting: <\/strong>This method looks at the supplier base and tries to gauge what product these suppliers will have and in what quantities. <\/li>
  • Demand forecasting:<\/strong> This method analyzes potential customer demand for an end product for some period of time (whether it is a week, a month, or a quarter.) Other considerations: cultural trends, seasonality, and consumer confidence. <\/li>
  • Price forecasting:<\/strong> This method puts how supply and demand shifts may affect components prices. It also considers other factors that may impact prices such as potential weather events, economic trends, etc. <\/li><\/ul>\n\n\n\n
    \n