Demand Forecasting Software: a Sure Way to Improve
Demand Forecasting Software
Make smart, strategic, and accurate decisions!
It’s January 1st, and you’re rushing to your favorite store to buy some items to help you with your New Year’s resolutions. You follow the crowds to the athletic section, and you’re pleasantly surprised. The store still has all of the products you came to get, even though it seems like the whole town is there. You’re able to purchase your new exercise outfit, free weights, and a new water bottle. How did the store have enough inventory? There were so many people in the isle with you, and it seemed like everyone was able to get what they wanted. Well, the store you shopped at must be using some pretty awesome demand planning software.
Demand planning is a sure way to enhance your operational strategies and boost your success. What is it? Demand planning is the process of forecasting future demand to know how much a company will sell, then planning their inventory to meet that demand. Seems simple enough, right? Past data and statistics are used to forecast consumer demand for a product or service. This can be an extremely helpful tool for all kinds of companies. This is how the store knew that in January there would be higher demand for athletic equipment and accessories. They were able to analyze previous data and create accurate forecasts using demand planning tools. Do you think your company would benefit from demand planning and forecasting?
Demand planning will improve multiple elements of your supply chain. Everything we own is evidence of a supply chain, so doesn’t it make sense to do what you can to strengthen your company’s supply chain? Making necessary changes on the demand side of your operations will improve product development, marketing, production, distribution, customer experience, and more.
Demand Planning Software
Demand planning software uses algorithms to identify and analyze demand patterns. It generates accurate reports which help users in creating useful plans for their inventory management. With this tool, your inventory management will be greatly improved. Your company will be able to predict the upcoming demand of your products. This will help you know what items you need more of, and which you don’t. You will avoid slow selling, less popular items taking space on your shelves from popular, quick selling products.
Today’s market is always changing. Some products currently in high demand are, Alexa products, facemasks, subscription food boxes, eco-friendly products, and diet-fad items. These are all subject to change, and the suppliers of these products need to be prepared. If they were suddenly all sold out of these products, consumers would not be happy. Keeping consumers happy is a very important part of any company’s practices. In today’s technological world, it is often an expectation to be able to find a desired item at the click of a button and then to see it on your doorstep later that week. Amazon offers one day shipping on many of their products. They must have great confidence in their inventory to be comfortable with this option. The amount of data being analyzed and used to create forecasts is rapidly advancing, and it can get confusing. Demand management software allows you to keep up with these ever-growing numbers. Why wouldn’t you want to implement this tool? It’s a sure way to boost the success of your company, and it will help you keep happy and satisfied customers. Sounds pretty great, right?
Coca-Cola: An Example of Effective Demand Planning
Let’s look at a real-life example of a company that effectively uses demand planning and forecasting. Coca-Cola is striving to appeal to a large variety of consumers. You may think of them as just the iconic red can, but they have over 200 brands within their company. They are trying to have an appealing option for everyone. Can you imagine planning for over 200 brands of drinks? They do it, and we can learn from their experiences.
Coca-Cola’s biggest struggle right now is making sure they have enough trucks to deliver products to different locations. How many stores do you enter that don’t sell Coke? Not very many. Demand signals suppliers to manage master production scheduling. Once they know who wants what, they can start making delivery plans for the trucks. When unexpected demand requires surprise delivery, their budget becomes threatened. Having accurate forecasts is mandatory in this process. Without them, they would lose a ton of money. They are constantly making changes in their supply chain due to different forecasts and live orders. Coca-Cola is just one example of a company that productively uses demand planning software to manage their 3,500+ products.
Think back to when you rushed to the store to get your New Year’s resolution items. Wasn’t it awesome you were able to get everything you wanted? Due to their demand planning, the store you went to was able to supply you with products in high demand. Demand planning is one way that Coca Cola has set itself apart as one of the most popular brands in the world. It helps businesses make confident decisions backed up with supportive data and forecasts. It allows for strategy to be utilized rather than just execution of plans. Successful and well-known companies, like Coca-Cola, implement this practice into their operations. Doing so not only saves businesses money, but results in them bringing in a higher profit than just guessing future demand would. These successful companies are great examples to look to and learn from.
So, you have a business. Do you want to save money? Well, you are in good company. In today’s changing market, you need Avercast. Our software will cater to your specific needs and prevent stock out sand overstock situations in your inventory. You will see improvements in your operations. You will have more confidence as you use forecasting to create plans. Regardless of the size of your business, we have an option for you! Avercast has developed industry-leading software. Our demand planning and forecasting software uses over 200 algorithms to produce the most accurate forecasts possible. Contact us today to learn more about how your company can benefit from Avercast’s Forecasting Software.