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Tag Archives: Demand Forecasting

Quick 3min Video Results to Demand Forecasting VS Sales Forecasting for Inventory ReplenishmentWe know millennials along with the rest of us learn better watching a video. YouTube and others have littered the internet with misinformation they call demand forecasting. Because the software says demand forecasting doesn’t mean it is demand forecasting, ha – obvious, right? Did you know there are differences in demand forecasting and sales forecasting? Google ‘Demand Forecasting videos’ and the top results are all using sales forecasting methodology, Not Demand. The inventory results caused by people using sales forecasting are costing companies millions of dollars. If demand forecasting and sales forecasting for inventory replenishment are the same, why use two different words: demand and sales? Most forecast videos talk about forecasting techniques and at some level forecast algorithms. The truth is the forecast algorithms for demand forecasting and sales forecasting can be the same. The key difference between demand and sales forecasting is the data being used in those algorithms.
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See Differences Between Demand Forecasting and Sales Forecasting for Inventory ReplenishmentATLANTA, April 27, 2017 – The Data Profits Team has noticed the most Frequent Question we receive is “What is The Difference Between Demand Forecasting and Sales Forecasting?” In fact, our most-read blog of all time deals with this subject. Even though this blog post is over 5 years old, it still attracts thousands of users to our website www.data-profits.com each month.

Data Profits’ goal is to educate our customers and readers/viewers of our blogs, SlideShare presentations, and YouTube videos.

Data Profits’ Video: “See Differences Between Demand Forecasting and Sales Forecasting for Inventory Replenishment”

We realize that millennials and others learn better by watching a video rather than reading a blog. Therefore, we introduced a new video that helps explain the Difference Between Demand Forecasting and Sales Forecasting. Click Here to watch our new video. Even if you feel you know Difference Between Demand Forecasting and Sales Forecasting, you may pick up a few tips for educating others.

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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. Read More

Forecasting-for-Slow-and-Intermittent-Products-the-Fiction

Is Your Demand Forecasting Solution Actually Leading to Profits?

All retailers face the fact that demand forecasting products that move slowly and products that move intermittently during the year is required to grow profits. In fact 35-40% of most retailer assortments consist of slow and intermittent products, while this may be well known, it is less known that demand forecast and how the supply chain software uses the demand forecast are the keys to making your turn goals and maximizing your GMROI. Read More

new_seasonal_index_lessons_from_history

Is Your Demand Forecasting Solution Actually Leading to Profits?

A seasonal index, or seasonal multiplier, is a figure that is used to adjust a demand forecast, either raising it or lowering it for a period of time. The result of the calculation (product base forecast x seasonal index) can be used to determine the inventory needed to support sales during that period of time. A holiday like Memorial Day, a season like spring, or an event like the Super Bowl is often better serviced by applying a seasonal index across the year.
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the-internet-of-things-is-bound-to-make-an-impact-in-your-demand-forecastingThere’s a lot of buzz surrounding the Internet of Things (IoT). With Nest Labs’ line of household connected devices and Amazon’s new Dash Button for reordering groceries, customers are getting used to more and more connectedness in their day-to-day lives. Retailers too are trying out ways to be not only more connected to customers but also to connect disparate parts of their business operations by adding connectivity to everyday things. RFID chips in packaging can track inventory from source to customer and provide all kinds of valuable data, as well as lower shrinkage. Digital signage and shelf tags saves labor and reduces pricing errors. With all the new and exciting things that the Internet of Things can bring to retail, it’s shocking how behind the times most inventory planning and replenishment software is.
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6-Seasonal-Index-Mistakes-You-Dont-Want-to-MakeWe all know snow shovels aren’t going to sell in the summer and beach towels will flop in December. Most of us can identify general seasonality and spot a really bad seasonal index by applying simple common sense. But do you frontload your key seasons or reduce orders because your Replenishment System doesn’t quite get the job done? You might be running into these common seasonality issues that cause retailers big headaches. The irony of seasonal index errors is they are one of the few things where an Excel file can actually solve the problem; yes shocking, we all thought Excel was a report tool.

The key point to remember – a seasonal index is just a multiplier to run against the base forecast. Some software solutions will lose you with a discussion using words like multiplicative and additive. While the discussion has merit, these terms only describe seasonality math, not how it needs to be applied in replenishment or even what numbers are needed in the seasonal index math. A seasonal index is multiplicative and a market force is additive against the base forecast…but then I have gotten ahead of myself.
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Is-your-Demand-Forecasting-Ready-for-the-Year-of-the-Monkey-3-Things-to-CheckChinese New Year: Its Coming, Is Your Supply Chain Ready?

Chinese New Year starts on February 8, 2016. Most retailers are familiar with Chinese New Year because every year their Chinese suppliers and factories shut down for a few weeks. Chinese New Year is a huge celebration for China and many surrounding countries. Workers head home for a much deserved vacation that can last 4 weeks or more, leaving quiet offices and empty factories. That means nothing is shipping and that can result in empty shelves or managing the cost of overstocks- if your Inventory Replenishment software bought the right products.
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Demand Forecasting Slow Moving Products – 7 Dos and Don’ts

Wonder What Happens Next in this Slow Moving Scene?

I call them “heartbeat” products. Every Retailer and Manufacturer has them. The slow or niche products that don’t sell every day but are still vital to your business. If you charted their sales history, it would look like a heart monitor, up one week, down the next, up and down, up and down. No gentle seasonal curves here, just jagged peaks and deep valleys. You never know week to week if you are going to sell none or a hundred. Often expensive, well-managed heartbeat products can be valuable sales drivers. Poorly managed heartbeat products can eat up your profits and burn holes in your open to buy. So how do you maximize sales and lower your inventory on these slow movers?
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Data Profits Empowers a Demand driven Strategy for Retailers Gearing up for Holiday Shopping

Empowering Retailers with a Demand-driven Strategy for Holiday Shopping

ATLANTA, October 13, 2015 – For retailers, planning for the 2015 holiday shopping season – the season that can make or break the sales year—has been in process for months. In the case of shelf-stable stock, large purchase orders are already sitting on retail shelves. Leveraging technology to deliver actionable insights and forecasts, Data Profits provides retailers with the tools to ensure a profitable, nearly worry-free holiday season. Retailers can now take advantage of their free download “Data Profits 5 Step Checklist for Retailers to Gear Up for Holiday Shopping Season.
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