Demand Forecasting for Manufacturing
Why it is so important for your company!
Overcoming the challenges of the manufacturing sector in today’s business environment and achieving profitability should be the goal of a progressive minded entrepreneur. Statistically, the U.S manufacturing sector has been on the decline since year 2000 by losing 5 million jobs because of:
- High cost of doing business
- China’s ability to undercut American workers with cheap labor
- Increasing cost of inventory, goods and transportation etc.
To reverse this trend, managers should go beyond spreadsheets for better inventory and product demand forecasting to lower cost of production and at the same time, have enough products to satisfy the market.
With Intuendi’s manufacturing Demand Forecasting Solution, the business manager can plan in view of future market reactions, available resources, production capacity and materials.
Discover how you can use Intuendi Demand Forecasting Software in manufacturing operations to identify profitable opportunities and eradicate underperforming processes and activities. Intuendi will optimize your decision making abilities to weed out underperformers and focus on what matters to achieve amazing results.
Every decision you make starts with a forecast of your future sales. You need to plan according to your resources: employees, production capacity and materials. Good estimates of your future demand are an essential input for setting up inventories of finished products in order to serve different customers and to have enough product on hand to sell.
Demand Forecasting can’t see exactly what will happen to your business over the coming years, but it provides a sense of direction that helps you to get the most out of your company by making better decisions in many aspects of your business.
When an out of stock situation occurs you have to modify your production plans with dangerous side effects on your manufacturing capacity. This leads to undesired costs. Poor demand forecasting is one of the causes of the problem.
Set the right stock level
Having extra product in your wharehouse isn’t the key to manage your supply. That excess inventory is an unnecessary cost that locks your capital and prevents you from investing in more valuable strategies. You can use the information coming from demand forecasting for deciding the right stocks level.
Speed up your production
If you set up your processes according to the estimated demand, the result is that you speed up your entire production cycle. This means that you are improving your business.