How does Business Forecasting Predict Your Business?
Business forecasting is a rather broad term. It refers to predicting different elements in your business. For example, forecasts of demand, sales, inventory, income, and more. There are many moving parts in your business, and business forecasting tools can help you get a better grip on your operational methods.
Are there parts of your company that you wish you better understood? Nobody’s perfect, and likewise no business is perfect either. There are always areas that can be improved, and business forecasting software is one way that’s sure to help.
There have been countless changes and disruptions to supply chains over the last few years. Holidays, trends, COVID-19, and now the Delta wave are just a few examples of external factors affecting supply chain management. Let’s look at two major companies and see how they have been affected.
Walmart and Costco are some of the most popular stores in America. They both offer thousands of products at prices that are often unmatched elsewhere. Their shoppers are frequent, loyal, and provide a constant stream of demand. Using business forecasting software helps in their decision making processes, inventory accuracy, and much more.
Costco
The toilet paper shortage of 2020 isn’t soon to be forgotten. There was a reported 845% increase in the demand for toilet paper.
Costco’s best-selling product is their Kirkland brand toilet paper. They sell over 1 billion rolls of toilet paper a year. Since the Delta wave has increasingly become more of a prevalent issue, Costco has again placed limits on their paper towels and toilet paper.
Proctor and Gamble is the biggest toilet paper producer in the United States. Their factories are currently working around the clock to meet consumer demand for their precious T.P. Even with the buying limits, demand for toilet paper has again risen above the inventory available. Times like these are when companies realize forecasting software for businesses is a very beneficial tool. If your company isn’t using it yet, you might want to get your hands on some good business forecasting software.
Walmart
Using budgeting and forecasting software, Walmart is aware of the demand that comes their way.
Amid the expectancy of heightened consumer demand, Walmart has made some big moves. They’re currently hiring 20,000 supply chain workers and offering an average of $20.37 an hour. The national average for minimum wage is $7.25, so that’s a pretty good hourly wage for working at a warehouse.
Walmart anticipates a large influx of demand with both the Delta wave and holiday season being upon us. To encourage people to apply for the thousands of job openings, Walmart has increased the benefits. They’re offering healthcare plans, bonus checks for getting the vaccine, and they have 6 new academies where employees can receive supply training.
With knowledge of what demand around the corner is, Walmart is doing their best to make sure they’re adequately prepared.
Business forecasting software allows you to have greater insight into the future demand of products or services you offer to consumers. With these forecasts, you can ensure your inventory levels are accurate. You can be confident that you’re prepared to meet the desires of your consumers.
Having accurate inventory strengthens your company in multiple ways.
- Finances – you’ll save money when you have correct inventory levels. You won’t waste money on products that end up being clearance, donations, or trashed. Inventory isn’t cheap, so why pay for what you won’t use?
- Warehouse – your warehouse operations will become much smoother. The avoidance of overstock and stockout situations brought with accurate inventory will help you greatly. Turn overrates will improve, space will be used as efficiently as possible, and you’ll only employ the labor you absolutely need.
- Customer Satisfaction – your customers will be happier! No one likes finding the item they want is out of stock. Avoid negative customer experiences as they’re able to rely on your inventory. When you know what they’re going to want, sometimes even before they want it, you can have the right inventory.
Avercast has budgeting and forecasting software options for companies of all types.
We offer business budgeting tools to ensure your company successfully meets everything the world throws your way! Our forecasting software uses 250+ algorithms to produce the most accurate forecasts as possible. Our experts are constantly working to make sure we have the best software available today!
If you think your company could improve with business forecasting software, please reach out to us today! We would love to chat about specifics with you. Schedule a free demo or call today!
