We need demand forecasting software because we need to forecast demand and we need predict the future demand because we need to replenish our inventory. We need to replenish our inventory, why, because with new inventory we would have nothing to sell!
Demand forecast is not as simple as using demand forecasting software because while excelling at replenishment and demand forecasting will enable any company to implement their promotional, pricing and assortment strategies. Demand forecasting is very complex as you can see from the last line where are talking about taking into account inventory promotions and inventory pricing.
However, that is not the only benefit accurate demand forecasting that can be generated by demand forecasting software; companies should also be looking for additional profit which can be gained by minimizing their inventory levels and reducing total lost sales due to poor demand forecasting. By implementing demand forecasting software companies should also notice that more time is available for inventory analysis and have the ability to take on special projects. This time was previously used for fighting the fires of overstock and out of stocks which should be now eliminated with the introduction of demand forecasting software.
That is all very good, but why do we need demand forecasting software? When you think that demand forecasting is the foundation of replenishment buying, so required a bit more than a simple excel sheet. Replenishment focuses on acquiring the right amount of inventory to support the anticipated need, and demand forecast is the key to understanding that future need and predicting the future demand. While some of the more simple demand forecasts are calculated manually relying on the experience of the buyer, more accurate demand forecasts are almost always calculated using scientific algorithms- hence the need for demand forecasting software.
So when you think about your business and the type of attention it needs, does it need something simple that will not deliver any real benefits or does your company require something that we help you grow, increase profitability and drive customer satisfaction? If the answer is to drive and deliver profits, then your own choice is to look at demand forecasting software!