EXAMINING THE LINK BETWEEN SALES FORECASTING AND ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF NIGERIA'S BAKERY SECTOR

Abstract

Sales forecasting is a crucial aspect of successful marketing planning, providing vital knowledge for firms to plan their activities, anticipate demand, and make informed decisions. This study aims to explore the process of demand measurement and sales forecasting and its impact on business performance. The research focuses on understanding the relationship between sales forecasting, operational planning, and customer service levels.

Through an extensive review of existing literature, this study examines the importance of accurate sales forecasting in controlling costs, optimizing production quantities, and planning efficient logistics operations. Accurate forecasts enable firms to react promptly to customer orders and maintain high levels of customer service. Additionally, this research investigates the role of sales forecasting in budgeting and operational planning across various departments within a company.

Furthermore, this study explores the concept of market sensing and its implications for sales forecasting. Market-oriented firms that have mastered the systematic and anticipatory processes of market sensing are posited to gain a competitive advantage and achieve superior business performance. The ability of an organization to effectively gather and interpret information about its market environment and utilize it to guide decision-making processes is identified as a key driver of success.

The findings of this study contribute to the existing body of knowledge by shedding light on the importance of sales forecasting as a foundation for marketing actions and strategic planning. The research emphasizes the need for organizations to adopt a market-oriented approach and develop effective market-sensing activities to gain a competitive edge.