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One of the thorniest issues facing every supplier is the need for accurate product demand forecast and the appropriate procurement of the raw materials reflecting accurate anticipation of future order. Many customer-oriented manufacturers carry significant amount of inventory to accommodate buyer’s sudden demands. Others strive to minimize inventory levels in an attempt to lower costs. The latter companies often carry long lead time for their main products and ordering raw materials months in advance for a project with no clear forecast carries significant risks. Understanding the future demands allows the producer to prepare for what’s to come.

We can tap into future order prospects by analyzing the flow of various components of a finished product collectively. Since in some cases we maintain procurement contract for a majority of components of a given finished product, we can predict consumer demand for that particular product, which translates fairly accurately into where each vendor supplying a single component stands in terms of their order schedule and project duration.