Forecasting Software 101 and Frequently Asked Questions

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Forecasting Software 101 and Frequently Asked Questions

Mar 17, 2023 | 5 min read

One key facet that separates tremendously scaling businesses from mediocrely performing ones is the ability to make decisions that work. The ability to judge situations and make decisions requires years of experience but also the right tools. For businesses, that would be Forecasting Software.

Now is the right time to give up the traditional decision-making approaches. The days of spreadsheets and gut-based decisions are gone. The surge of technology has enhanced the ease of doing business and customer experience, and it has also benefited companies by making their operations as efficient as possible.

The ability to forecast effectively can transform your business into a successful one. Forecasting allows you to anticipate your upcoming scenarios and devise a plan to grow your business. While the idea of forecasting isn’t new, technology has drastically changed how a company can forecast. One of the newer and most accurate modes is using forecasting software

Using set of advanced forecasting algorithms packed in a suite, forecasting software lets you forecast demand, inventory, and sales. For example, Avercast’s business forecasting software is one of the highly precise in the class. The software, enclosed with 250+ advanced statistical algorithms, allows you to predict with up to 99% precision.

Primary understanding of Forecasting software

In simpler terms, it is software solutions that, with the aid of past data, historical trends, and current market patterns, predict the future outcome of your product. Yes, it does sound like some crystal balls and magical wands, it’s technology. The demand forecasting software uses customer data, filters it, validates it, and then gives you a forecast number on which you can initiate your demand planning.

Classification of Forecasting Software

Forecasting software is classified into many groups, like sales forecasting software used for forecasting sales, demand forecasting software used for predicting demand. Here are some of the fundamental types of forecasting software: 

Demand Forecasting Software

 Demand planning and forecasting software is used to predict demand for the upcoming period. You can devise a plan to maintain the equilibrium between your supply capacity and demand. With over 250 advanced statistical forecasting algorithms, Avercast’s demand forecasting software gives you the most accurate demand predictions. Current trends, past data, customer behavior, and seasonality patterns are some of the primary factors the software considers before forecasting.

Inventory Forecasting Software

This is another critical software that allows you to anticipate the quantity of the inventory required to meet the customers’ demands. It also uses the same data sets as input. However, one vital thing that affects it all is advertising. The software lets businesses plan and manage inventory faster than traditional forecasting techniques. Avercast software, over the years, has assisted brands in reducing their inventory expenses by up to 30%.

Sales Forecasting Software

Imagine you have ten spreadsheets, each representing the last ten years. Each spreadsheet has thousands of data points, and you need to use that data to predict your upcoming sales. What’s the first thought to strike your mind? It is too cumbersome; we need a better alternative, right? Well, you have one, Avercast’s Sales forecasting software.

The software encapsulates advanced sales forecasting tools and uses previous sales data and data from sales personnel to project sales for the future. The software gives you more realistic sales goals and lets you adjust forecasts based on feedback from sales personnel.

Advantages of Forecasting Software 

The benefits of Business Forecasting Software are not restricted only to big companies. Even smaller companies are rewarded by using the software. One key thing to get the best performance is to choose software that best suits your needs. Besides enhancing overall efficiency, here are some advantages of demand planning and forecasting software:

1. Accurate forecasts

Producing precise predictions is the fundamental need for business forecasting. The forecasts are then used to structure a plan to meet the customers’ demand by using demand planning software . Manual forecasting is error-prone and can impact your decision-making. Choosing Forecasting Software is a way of ensuring that your forecasts will be accurate.

2. Insights about future

The software relies heavily on past data, historical trends, and market patterns, which ensures that you get reliable predictions. Avercast’s software allows you to forecast for up to 60 months in the future. The software also enables you to analyze specific dates to mark any remarkable changes in the data trends.

3. Simplified decision making

The days of making decisions based on your intuitions are long gone. Today, the more your business decisions are data-oriented, the more effective they will be. Avercast software has been assisting companies, large and small, do that effortlessly for years. The software rapidly provides you with the data, which leaves time for analysis, enhancing the quality of your decisions.

4. Automates business planning

Once data to frame your forecasts is readily available, the performance becomes smooth and easy. The software automates the business planning process and enhances your productivity.

5. Reduces time on manual processing

Your employees don’t need to spend half their day segregating and compiling spreadsheets. By choosing forecasting software, they are able to focus on productivity and their core functions.

Today, there are numerous software solutions to assist you with demand prediction and revenue forecasting. However, not all software is as efficient as it should be in driving decisions. And choosing the right software can prove to be a daunting task. When finalizing the right software, make notes of all the features the software provides. Will the software help you solve critical problems related to inventory? Will it assist you in reducing the stock-out scenarios? The correct solutions will aid you with insights so you can hit your goal easily and march on the path of undeniable growth.