How accurate demand forecasting can benefit your e-commerce supply chain during peak seasons

Successful e-commerce logistics is all about planning ahead. But with the increase in global ‘black swan’ events — environmental, societal, financial and more — even the world’s best clairvoyant would struggle to predict what ‘good’ will look like for supply chains in five years.

However, there are numerous steps e-commerce retailers can take to help future-proof their supply chains and protect themselves from any unwelcome surprises.

Importance of accurate forecasting

One such measure is effective demand forecasting. The more accurately you can assess what needs to be where and when, the easier it’ll be to manage your supply chain efficiently.

Poor forecasting can be costly. Nearly 60% of global merchants report lost sales from products being out of stock due to sudden changes in demand. Alongside that, damage to reputation that 23% report is even harder to repair.

With this added visibility, you’ll no longer need to keep such high levels of inventory in storage, reducing the amount of capital tied up in stock.

The cost of digitisation can lead some businesses to delay supply chain digitisation, but now is the time to play the long game. Increasing digitalisation and automation will lead to a 47% drop in costs for the global transportation logistics industry by 2030, according to PwC.

The practical steps outlined in this article might seem daunting or too expensive. However, at Maersk, our integrated logistics offerings and carrier-agnostic logistics capabilities are already set up and ready to use, which makes the transition smoother and more manageable. If you’re ready to talk about taking these steps, click here, and one of our experts will call you.