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.