Importance of Demand Forecasting in Supply Chain

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Importance of Demand Forecasting in Supply Chain

Nov 9, 2021 | 3 min read

There are companies everywhere who handle many types of products. Inventory can’t be successfully managed without the right tools.

Let’s say you need a shovel to do some yard work. You head to the store and go to the section for outdoor tools. Do you expect to just find one shovel for sale? Is there one shovel that will work for the needs of every individual customer? It’s likely that there are multiple styles, sizes, and brands of shovels for sale. You wouldn’t want to use a snow shovel when you plant tulips!

Why am I droning on about shovels, isn’t this a software company? Well, finding the right shovel for your needs is helpful, but not necessarily ‘life or death’ regarding your success. However, it’s crucial for you to find the right tools to manage the demand of your consumers. Keep reading to find out how demand and supply forecasting are sure to improve your company in revenue saved and generated.

Importance of Demand Forecasting in Supply Chain

There are many benefits of demand forecasting. When you use Avercast’s demand forecasting tools, your company will improve in the following ways.

Inventory Accuracy

That’s right. The days of overstock and stockout complications can end! Finding the right demand forecasting system for your needs will make your inventory accurate, all the time. Using forecasts, you’ll know what your demand is going to be in the future. This tells you the amount of product you need to keep in stock. It’ll let you assess your current inventory levels, therefore eliminating the dreaded instances of overstock and stockout.

Warehouse Operations

If your inventory becomes more and more accurate, your warehouse will follow suit. Your methods of handling inventory can improve and be much more productive. As you have the products your customers want, your orders will be filled accurately and timely.

Organization will improve as your shelves are free of excess products. Warehouse workers won’t have to scramble to fill orders while dealing with insufficient inventory or unhappy customers.

Customer Satisfaction

I don’t know about you, but I’m always happy when a store has the item(s) I want. I don’t like waiting for things to arrive in the next shipment, and if something takes more than 3-5 days to ship from an online retailer, I’ll usually look for another option with faster delivery.

When you’ve had reliable inventory for a good amount of time, customers will recognize your business as a dependable source.Your customers will be happy, and they’ll return to you for their future needs.

How to Forecast Product Demand

Avercast’s software produces forecasts using 250+ algorithms. Our experts have spent years ensuring these methods produce the most accurate forecasts possible.

Using a collection of different data types, the software predicts what upcoming demand is going to look like. This data can range from past sales, historical trends, seasonal factors, current market conditions, consumer profiles, and more.

Demand forecasting in supply chain is an essential practice. If you want to see your company improve in the above ways, as well as in additional areas, you need to get your hands on  demand forecasting software 

Avercast has the best demand forecasting software available. Our experts are always improving our software. When you forecast with Avercast, you have access to our technical professionals, and they will ensure that you know how to use the software in the best way for your specific needs. 

If you’re interested in becoming a better, stronger company, contact the Avercast team today. One of our experts would love to connect with you. Schedule a FREE call or demonstration!