How much money do you currently have tied up in stock? Imagine
being able to reduce your overall stock holding by even a
few percent, while still maintaining adequate stock levels
to satisfy sales or manufacturing requirements demand.
Sales Forecasting uses an algorithm designed to maximise
your overall return on investment, which is one of the
key indicators for any commercial entity, through the
use of relatively simple calculations, but on a scale
that is only possible with a computer.
with any forecasting technique, historical information
is an important indicator for future demand, for both
seasonal and relatively constant demand stock lines.
You can control the relative importance given to these
historical results, which variable weightings given
to results for "X" weeks or months ago.
may also vary the significance of unit sales, profit
margin and net sales value for a product when determining
the relative importance or ranking of each product in
relation to your entire product range.
automatic, stock ranking procedure will use these rules
to perform the equivalent of an "ABC" analysis,
except rankings can go from A to Z and beyond if necessary.
This relative ranking, or importance to your business,
of a product is then used to determine an appropriate
buffer or safety stock for each product.
are then made, using a demand forecast model or plan,
to arrive at an anticipated demand for each product
over the known forecast cycle period.
this figure, current stock levels, outstanding supplier
orders due for delivery within the cycle, order lead
times and buffer stock, a stock requirement can be determined
by simple arithmetic.
system will also alert you to products that it believes
are currently overstocked, or that may fall below safety
levels or become totally depleted over the cycle period,
for special attention.
information can then be used to plan stock distributions
in a multi-location environment, or have the system
automatically generate purchase orders against the appropriate
suppliers for the necessary stock.
Sales Forecasting is a proven tool that will help put
you in control of your stock, taking the guess work
out of this important business function.
for Sales Forecasting System Flow Chart