How can you use Technology to Forecast Inventory and Reduce Cost?
What is Inventory Forecasting?
Inventory forecasting is a futuristic strategy that aims at estimating the quantity of a product or service that consumers will purchase. Inventory Forecasting involves estimating what will be needed based on certain assumptions. Inventory Forecasting involves techniques including both informal methods and quantitative methods, such as the use of historical sales data and analyzing current product life-cycle demand trends.
Why Inventory Forecasting is important for your Business?
In today’s competitive market, Companies understand the importance of maintaining optimum stock levels to manage costs. Despite this, many companies are not successful in forecasting optimum Inventory level. Many companies rely on Internally focused, product-centric forecasting which does not work in today’s competitive market. Many companies often lose customer loyalty and struggle to forecast optimum inventory levels.
How to Forecast Optimum Inventory levels?
Inventory Forecasting feature helps your organization to significantly improve inventory planning by eliminating the inaccuracies that result in both over and under-estimations of customer demand. With Inventory Demand Pattern Analysis, you can assign each inventory item a targeted demand pattern and dynamically tracks its demand pattern as it changes over the life cycle. Inventory items demand patterns are assigned after analyzing current product life-cycle demand trends. Inventory Software automatically applies the appropriate algorithm that predicts customer Inventory demand for each inventory item taking the manual and forecasting error out of the equation for inventory managers.