How is strategic simulation different from forecasting?

Forecasting and strategic simulation answer two different questions. Forecasting aims to predict future demand as accurately as possible — it is about narrowing uncertainty to a single best estimate, typically at the SKU or category level. That is a necessary input for operational planning.

Strategic simulation goes one step further by evaluating how the Supply Chain would behave under a range of possible outcomes, not just the most likely one. Instead of asking "What will happen?" it asks "What could happen, and how should we prepare for it?"

This approach surfaces the vulnerabilities of a plan before they materialize and helps planners design strategies that remain effective even when conditions change — whether that's a demand spike, a supplier failure, or a change in lead times.