Exploring the importance of demand forecasting in B2B : Enhancing the overall customer experience and operational efficiency by utilizing forecasting and collaboration at a manufacturing company

Abstract

Being able to foresee the future is considered the ultimate goal for a company. Planning, strategies, and operations are being laid out and implemented by companies in order to anticipate what is coming, tackle the unexpected, and figure out day-to-day actions. A high percentage of these activities and functions are based upon assumptions for the future. The purpose of this thesis was to find out how different departments of a manufacturing company can benefit in terms of operational efficiency, inventory optimization, and greater customer experience levels by leveling up their knowledge of the future demand for their products and, as a result of that, make better, more calculated, and more thoughtful decisions in numerous areas inside the company. The commissioner of this thesis was a manufacturer in the bicycle plastic parts industry.

For the purposes of this thesis, it is consequential to investigate the importance of demand forecasting in B2B and to draw conclusions on their impact from the customer and organizational perspective. A qualitative study was implemented in the form of semi-constructed interviews. The interviews were conducted with manufacturing companies’ top executives from different departments to establish variety and relativity. With this research-based thesis, the study used primary data from the interviews to support its arguments, drew conclusions, and raised discussions and implications that emerged from the qualitative results.

Furthermore, the theory behind demand forecasting helped to reach foundational information that was used to raise further awareness of what forecasting is, supporting and linking that theory to the research with a deductive approach. The study combined the theoretical framework with real-world data, resulting in nuanced insights into the dynamics of demand forecasting and, more precisely, into customer-generated forecasts. The results showed that the demand forecasting role in a manufacturing company plays a pivotal role when it comes to aiding strategic decisions, and if collaboration with a customer’s demand is in place, then it strengthens the experience further. The findings also showed that monitoring the customer demand forecast is vital for ensuring its consistent accuracy, partnered with information flow interchange between the supplier and the buyer.