Inventory forecasting - models, methods & techniques ppc - EazyStock

Inventory forecasting – models, methods & techniques

A free resource from EazyStock ‘How to improve demand forecasting accuracy’ will help you master inventory forecasting techniques, so you can consistently maintain optimum stock levels across your business.

Your free inventory forecasting eBook

In this eBook we show you how to improve forecasting accuracy with a range of inventory forecasting techniques and best practice.

We’ll help you understand and master simple inventory forecasting techniques, so you can consistently maintain the right levels of stock no matter the challenge.

Get our eBook now!



Download this eBook and discover:

  • Inventory forecasting models to manage trends and seasonality
  • How to calculate forecasting accuracy & deal with demand outliers
  • The importance of demand types
  • The benefits of statistical inventory forecasting models

What is effective inventory forecasting?

Effective inventory forecasting ensures you have the right items in stock – at the right time – to fulfil production or customer orders.

Demand planners often use a mix of quantitative (using historical demand data) and qualitative (based on opinions and insights) methods to produce their stock forecasts.

As a rule of thumb, the further out the forecast is, the less accurate it will be. However utilising more sophisticated inventory forecasting techniques will help make your projections as accurate as possible.

How can you improve inventory forecasting?

Here’s five techniques to improve inventory forecasting accuracy:

Demand types

Group items based on their demand type e.g stable, erratic, lumpy, etc and use a suitable forecasting algorithm for each one.

Trends & seasonality

Regularly look for and monitor trends and seasonal demand patterns and adjust base forecasts accordingly.

Qualitative inputs

Consider qualitative factors, such as feedback from customers & sales teams, or market intelligence data.

Outliers

Identify outliers (extreme variances in actual demand from the forecast), as they can significantly skew forecast accuracy.

Calculate forecast error

Calculate the level of error in your previous forecasts, so you can factor this into future ones.

Want to learn more? Get our free eBook on inventory forecasting now!

Improve inventory forecasting with EazyStock

Many businesses are still using manual spreadsheets or basic software functionality to forecast demand. Both can lead to regular stock-outs or a build-up of cash-absorbing inventory.

More and more are therefore turning to statistical demand forecasting tools, such as EazyStock.


EazyStock connects with your current stock system and uses advanced algorithms to bring speed and accuracy to demand forecasting.

Forecasts are based on a stock item’s demand type, it’s demand volatility, any seasonal variances and long term trends – for more accurate sales (or manufacturing) projections.


Inventory forecasts are constantly reviewed and automatically updated. EazyStock then uses them to produce optimised reorder recommendations – speeding up purchasing tasks and reducing the risk of stock-outs.

Why EazyStock?

Ensure stock availability

Ensure stock availability

Make sure you always have the right products on the shelf to prevent stock-outs and delight your customers.

Optimise demand forecasts

Optimise demand forecasts

Utilise advanced algorithms to track product demand, accounting for life cycle stages, trends and seasonality variances.

Lower inventory levels

Lower inventory levels

Get rid of excess and obsolete stock, freeing-up working capital for investment elsewhere in your business.

Automate re-ordering

Automate re-ordering

Produce automated order proposals to process in EazyStock or send back to your ERP.

Accurate replenishment

Accurate replenishment

Automatically calculate safety stock levels, re-ordering points and order quantities to ensure optimised inventory levels.

Be smarter with suppliers

Be smarter with suppliers

Place orders more cost-effectively by considering suppliers’ delivery schedules, lead times, discounts and costs.

Improve efficiency & save time

Improve efficiency & save time

Ditch the manual spreadsheets and save time that can be spent on strategy and innovation.

Get a fast ROI

Get a fast ROI

Benefit from rapid ERP integration and get up and running fast with a system that’s easy to deploy.

Trusted by growth-driven companies

Get our free eBook on inventory forecasting

If you can accurately forecast demand, you can optimise your inventory levels, improve fulfilment rates and reduce carrying costs, all of which ultimately affect your bottom line.

In this eBook we’ll show you a range of inventory forecasting methods so you can consistently maintain the right levels of stock across your business.

 

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