The methodology of demand forecasting system creation in an industrial company the foundation to logistics management

Abstract

Contemporary business market environment has got dynamic character and it's typical by high level of competitiveness. Business markets are strongly globalized; material flows of supply chains are bulky and mutually integrated. In such business environment the companies of particular industries are facing heavy claims on entire enterprise management. As the result of current globalization trend is that the logistics management is crucial tool to manage all enterprise processes connected with inner or outer material flows. Thus effectively designed logistics management system of a company is foundation of integrated management across supply chains. Essential sub-system of any logistics management system should be demand forecasting sub-system to provide accurate input data to make business decisions at particular functional parts of a company. Demand forecasts are important to effectively manage all flows of supply chain echelons, which is also connected with living environment protection. In the paper is presented developed methodology to create demand forecasting system in any industrial or service company whether we are talking about automotive, food, pharmaceutical, heavy machinery or other industrial or service branch. The methodology is subsequently applied in real case study - the design of demand forecasting system in the Czech food company. At the conclusion, it's stated a conception of logistics management system of a company based on progressive demand forecasting sub-system, when it's observed system research approach. © 2015 IEEE.