Demand Forecasting Software Can It Pay for Itself?
So what is the backbone to any significant, efficient and profitable supply chain? It is, of course, demand forecasting or better yet demand forecasting software like that from Intuendi. We all should be aware by now that having out-of-stock products means that your shelves and warehouse racks are empty and then the funny part if that on the flip side there are billions of dollars wasted each year in excess stock sitting on those same shelves. This all comes from poor demand forecasting or lack of using proper demand forecasting software like that of Intuendi. While it could be said that forecasting demand isn’t an exact science, however, with the right solutions like our demand forecasting software, companies can create accurate demand forecasts that reduce excess stock, limit out-of-stocks and increase profitability.
So how important is demand forecasting and demand forecasting software?
According to a recent article by Deloitte about managing assets in volatile times, the company explains that “improving demand forecasting and inventory planning processes to lower inventory requirements… can dramatically reduce working capital requirements.” And if you did not know by working capital we mean cash… yes, using demand forecasting software you can reduce the stress on your cash flow and actually help it!
As Deloitte suggested, all it takes is looking at your inventory to recognize the importance of demand forecasting and demand forecasting software. Demand forecasting software uncovers the true amounts that you should be replenishing while taking into account holidays, seasons, promotions and all those things that make it impossible to just order a flat quantity of products each month.
When demand forecasting is done right with the use of demand forecasting software, the ironic cycle of overstocking and understocking items is stopped. Instead, you’ll see improved accuracy in your demand forecasts, gain a better hold on how seasonality affects your demand and bring collaboration to your company through one single view of demand. Then on top of a better demand forecast, your demand forecasting software will pay for itself with additional sales, increase profit and less wastage.