Improve your demand forecasting accuracy and take back control!
Traditional inventory management strategies are no longer effective at dealing with today’s dynamic marketplaces and supply chains. In this whitepaper, we review the factors that affect demand, ways to improve your demand forecast and how to measure forecasting accuracy. We then look at how inventory optimization techniques could provide the answer.
Demand forecasting involves predicting customer demand for an item over a defined period, which then determines how much inventory needs to be ordered to cover demand.
Getting the demand forecast correct is a key step for successful inventory management.
Analyzing each item in your inventory to determine an accurate forecast takes time – poring through sales history to figure out the demand type, then including factors like seasonal demand, promotions, maybe even additional knowledge about upcoming customer orders. Manually generating forecasts takes time and is more prone to error. Plus, forecasts quickly become outdated as new data is collected – so you need to start all over again.
One way to improve accuracy and quickly generate forecasts is by using software that specializes in demand analysis. Companies across industries are therefore turning to inventory optimization tools, such as EazyStock.
EazyStock easily connects with your ERP or inventory management system. It not only produces forecasts at SKU level, but also determines safety stock levels, stock classification and reorder point calculations.
Inventory managers no longer need to be Excel geniuses or ‘human calculators’, giving them more time for strategic decision-making and looking after suppliers and customers.
Accurate demand forecasting is a key part of inventory management. Without accurate demand forecasting, you can quickly end up with excess and obsolete stock piled up for non-moving items while constantly running out of stock for items with high demand.
EazyStock’s whitepaper How to Improve Demand Forecasting Accuracy can help you take back control of your inventory with demand forecasting best practices.
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