Why Demand Forecasting is so important for retailers today
Retailers need access to accurate data in order to quickly respond to changing economic conditions and customer demands. Many businesses still utilize disparate systems for customer orders and inventory management. Physical inventory counts often become an important part of verifying that inventory is accurate on the spreadsheet before promising a customer a delivery date. Delays in data-sharing and redundant data handling from one system into another can lead to inaccurate information and delays in making decisions, which can have an impact on cash flow, inventory counts, and customer satisfaction.
Importance of Demand Forecasting in Retail
- Increase Customer Satisfaction – Forecasting will help predict product demand so that enough product is available to fulfill customer orders.
- Reduce Inventory Stock Outs – If you are buying from long lead time suppliers you need a forecasting tool so that your suppliers can arrange raw material and anticipate orders.
- Lower Safety Stock Requirement – A good demand forecast process will allow you to lower the safety stock requirement needed to cover new product launches, promotional activity or seasonal variation.
- Manage Purchasing Better – Demand forecast is essential for making smarter inventory planning and purchasing decisions across multiple divisions and seasons.
- Plan Sales Strategies – Use demand forecast to help with functions like Product Management, Marketing and Product Design. Enabling your team to make smarter decisions on promotions, pricing and purchasing.
Gain greater control over inventory with the Softvision Suite’s Demand Forecasting solution which integrates directly with your enterprise resource planning (ERP) solution. You can get a closer look at safety stock and save money from blindly overstocking the warehouse while also reducing stock-outs. Unique SKUs can be used when developing forecast scenarios and users can create safety stocking strategies for specific products or categories. Seasonality and other influences are factored in to develop a more accurate and realistic forecast. This flexibility and rich insight offers greater control over inventory, safety stock, and fill rates, which improves customer satisfaction as well as profit margins.
If you are frustrated with inefficient systems that aren’t meeting your needs, then it’s time for a change. Be proactive instead of reactive with inventory management and replace inadequate systems with stronger technology. Our team is ready to help you understand how Softvision Suite can improve your inventory planning and purchasing processes with data analysis and automation – get in touch with us today!