Demand-based inventory management, also known as “need-based” or “demand-based”, is a concept in warehousing and inventory management in which the future stock of a product or resource is determined by estimating future consumption. In contrast to consumption-based inventory management, in which current consumption serves as the basis for inventory planning, demand-based inventory management is forward-looking and attempts to predict future requirements.

Demand-driven inventory management is usually based on statistical methods and forecasting models that analyze historical data and trends to predict future consumption patterns. These forecasts are then used to plan and control future inventory by initiating reorders or production in time to meet expected demand.

The benefits of demand-driven inventory management lie in its ability to optimize stock levels, avoid overstocking and at the same time ensure a high level of supply readiness. By focusing on future needs, it enables companies to use their resources more efficiently and reduce costs.

This method is used in various industries and companies, including retail, manufacturing, logistics and services. It is particularly useful in environments with seasonal fluctuations, irregular consumption or short-lived products, where precise planning and control of inventory is crucial.

Overall, demand-driven inventory management is an effective strategy for optimizing warehousing and inventory management, enabling companies to respond flexibly to future changes in demand and strengthen their competitiveness.