What is the main focus of financial forecasting in logistics?

Financial forecasting in logistics primarily focuses on estimating inventory-related financial outcomes. This aspect is crucial because it involves analyzing costs associated with inventory management, including storage, handling, and replenishment. Accurate forecasting helps organizations plan their purchasing and inventory levels effectively, aligning financial resources with operational needs. This ensures that they have adequate stock to meet demand while minimizing excess inventory and associated carrying costs.

Understanding competitor pricing, measuring customer purchasing trends, and predicting future product designs, while important in different contexts, do not directly pertain to the financial aspects of inventory management that forecasting specifically addresses. The main aim is to provide insights that inform strategic decisions regarding inventory investments and cash flow management within the logistics framework.