What is the primary focus of demand planning in logistics?

The primary focus of demand planning in logistics is the systematic forecasting of customer demand. This process involves analyzing historical data, market trends, seasonality, and various other factors that impact customer behavior in order to predict future product demand. Accurate demand forecasting is crucial because it enables organizations to align their inventory levels and logistical operations to meet customer needs efficiently while minimizing excess stock, reducing costs, and avoiding stockouts. By effectively forecasting demand, logistics professionals can ensure that resources are allocated appropriately and that supply chain processes are optimized to fulfill customer expectations.