The Role of Demand Forecasting Software
So what is the role of demand forecasting software in your business, as you are aware demand planning and demand forecasting deals with determining the future demand of your inventory and with planning what your company should do to influence inventory demand concerning sales, selling, prices and marketing?
While this might sound simple enough, it is, however, also a process of uncovering uncertainties connected with the inventory forecast and inventory demand, i.e. a risk analysis when it comes to the inventory demand. Are you starting to see the role of demand forecasting software when it comes to demand forecasting and inventory planning?
As we all know the goal of demand planning and to a certain degree demand forecasting software is to plan and develop an inventory forecast, which is feasible and exploits market opportunities and available resources. Remember all goals needs to SMART and the “A” means attainable while the “R” stands for realistic. That is the key to demand forecasting software and something that at Intuendi focuses on is that what is produced by our demand forecasting software is realistic and usable by all of our clients.
To be successful companies must take an overall view, not just a simple observation but aggregating complicated bits of information, comparing different factors and modelling different scenarios to identify the risk and highlight the best model for that inventory item. This is all made possible with the use of demand forecasting software which develops a complex digital model of how demand emerges, and how the inventory forecast is to be calculated.
How does demand forecasting software work and go about creating your demand forecast? Well to develop your inventory demand model, which includes prior sales data and causal factors, the demand forecasting software should identify the demand drivers and/or demand indicators, which are significant to your inventory demand.
This can be achieved through a realistic assessment, test and simplification and a data identification process, ending with a mathematical model or as you would know it as a demand forecast. This should go some way to explain what your demand forecasting software is actually doing. However, a better way might be to see it work on your data, click on the button below for a free trial of Intuendi demand forecasting software.