Inventory Forecasting Software
Inventory forecasting software
By providing businesses with a better idea of what inventory is or will be needed and when reorders should occur, inventory forecasting software assists with reducing both out-of-stock and overstocking occurrences. Combining historical trend analysis with anticipated season fluctuations and promotional events, inventory forecasting software enables purchasing managers with the ability for better spend management planning and improved collaboration with vendors.
Optimizing your inventory is critical to the success of your business
Most businesses have a significant, if not the largest, amount of their capital tied up in inventory.
Too much inventory reduces cash flow and the opportunity to use those dollars for a better moving product. Too little inventory can result in lost sales and poor customer satisfaction. Caught in the middle of the inventory balancing act, many businesses rely on guesses when it comes to predicting what inventory they need and just hope for the best.
Software to predict sales and inventory demand more accurately
The ability to quickly adapt to fluctuating customer demand, variable requirements or changing market conditions can be the profitability difference maker.
Smart business decisions require insight that can enable actions to improve the situation. The process is greatly improved if it can be accomplished quickly and easily, with suggested action items.
Fortunately, forecasting tools exist to help you understand your inventory needs, assists in optimizing existing inventory levels and provides guidelines that can improve purchasing management. As a result, customer satisfaction and profitability are increased.
Using demand planning software for understock analysis
You can’t sell it if you don’t have it.
Many businesses don’t realize the real cost of a lost sale due to an out of stock.
Start with the marketing time & money that was invested to attract the customer – a customer that was ready to buy – then was disappointed that the item they wanted was not available.
Next, the obvious, the profit on that sale that was lost. But it’s not finished there…the business image has been tarnished & that customer may not return in the future.
Lost profit, a disappointed customer and your reliability in question.
Inventory forecasting software can help you reduce lost sales from out of stocks
One method employed to reduce lost sales is to attempt to track sales lost as a result of an out of stock. However, there are potential flaws with this approach – sales may not consistently record every out of stock lost sale, they may double-record the lost sale, etc.
A better, more accurate approach is to utilize inventory analysis and decision support tools that enable buying trend analysis to better predict future buying and production needs.
And then there’s the phantom inventory lurking in the shadows. Phantom inventory is simply inventory that shows as inventory on-hand when in reality, none really exists. Phantom inventory can significantly affect lost sale due to out of stocks since it appears quantity is on hand when it is not, and therefore, purchasing does not reorder the item.
Inventory demand planning software with sales analysis
In this competitive environment, it’s never been more important to make sure customers are satisfied, getting the products that they want, when they want them.
To accomplish this, companies must examine their business holistically. Viewing the entire business, from sales to purchasing to operations to the warehouse, provides the ability to analyze & implement quality, consistency and efficiency improvements with far greater results.
Inventory demand planning software with sales analysis benefits the entire business
Let’s face it – few businesses survive without sales.
Without sales, there is no need for purchasing, inventory, warehousing, customer service or shipping. So, it is only logical that most functional areas in a business should analyze the segment of the business that they depend on for their existence – sales.
What can sales analysis tell the rest of the business?
- Sales trend analysis enables better prediction of future purchasing and production needs.
- Marketing plans based on product profitability result in improved ROI.
- Customer analysis can uncover geographical trends potentially enabling cost savings through dispersed warehousing and shipping.
- Product-level sales information can be used to manage the supply chain more efficiently with fewer stock outs.
- Ensuring your most profitable customers receive top-level service from everyone in the company is good business.
Inventory demand planning software: Reorder analysis
How do I know I what to reorder?
How much should I order?
When should I reorder?
These are three of the most common questions we hear from businesses before they begin using inventory forecasting tools.
Reorder tools can…
- Easily establish reorder points (minimum stocking quantity) for each product based on anticipated demand and lead time.
- Alert you when the inventory of a product drops to the reorder point and warns that you are low on stock.
- Enable purchase orders to be automatically generated based on inventory requirements (i.e. stocking levels).
- Recommend items to be purchased based on established stocking levels and primary suppliers.
- Help you evaluate vendor options and quantity for each product to be purchased and edit as needed.
Acctivate inventory forecasting software
Award-winning Acctivate inventory management with inventory forecasting software helps you make sure you have enough of the right inventory on hand, without having too much, to fulfill sales when sales happen. With tools that simplify forecasting & sales trend analysis, you get it right and ordering new products or reorders is a quick, easy process.
The result. Increased forecast accuracy, reduced inventory purchasing errors, reduced inventory levels, improved customer service, and reduced out of stocks.