Question

How has the development of the Internet affected the way companies forecast in support of their supply chain planning process?

Short answer

Answer

Forecasts are vital to the companies and for every significant management decision. It is the basis of corporate planning and control.

Step-by-step solution

Supply chain planning 

Supply chain planning is the process of determining the optimal manufacturing and sales volumes that the corporate is trying to attain and laying out the steps to attain those volume goals and related revenue targets. Supply chain plans typically are long-term, running 52 weeks or longer, looking at a company’s goals, and include production planning details.

Effects of the internet on a company’s forecast in their Supply Chain Planning

The effectsof the internet on a company’s forecast in their Supply Chain Planning are given below:

1. The development of the Internet has positive effects on the company’s forecast in their supply chain planning process.
2. There will certainly be more reliance on the technology as it continues to improve its abilities. However, it is sure that technology will take over the whole supply chain planning process anytime
3. Technology in actual speeds the supply chain planning process, companies will need to be more and more agile.
4. It would be impossible to underestimate thegrowing impact of the Internet and Web-based technologies on companies' supply chains.
5. For reaching new customers and markets, these web-based technologies are certainly real business opportunities.
6. The eye-popping rise of B2B and B2C players, such as Amazon.com, eBay, Dell, and Cisco, demonstrates the potential for top-line impact.