Demand Forecasting Methods Highlight Differences between Demand and Sales
Demand Forecasting software will measure and account for Lost Sales, overstock and closeouts. These are three pitfalls of not having a demand forecasting software solution. Sales forecasting methods doom you to repeat last years sales. Without real Demand Forecasting, tracking lost sales is only a KPI. Unless the lost sales are automatically incorporated into the forecast method, it's a sales forecasting solution. Closeouts, Overstocks and promotions also impact future demand. A demand forecasting solution will incorporate relevant POS data into a replenishment demand forecast using sales by events like lost sales, promotion, closeouts.
This video is a tale of two businesses. One business uses sales forecasting software, the software description - said demand forecasting?!? The other business uses a cutting edge demand forecasting solution, watch and see if their results are familiar.