With the holidays right around the corner, demand forecasting is the name of the game in the retail sector. Making up 20% of gross sales across the industry and as much as 30% total, ensuring that your business is in position to reap as much business from the holidays is important. But to do so takes more than just filling the stockroom with overstock, ensuring that you are efficiently taking advantage of stock requires an intimate knowledge of the community demographics on top of examining past sales data, something no spreadsheet or home brew system can offer.
Ensuring Your Systems are Working Efficiently
The big problem with most demand forecasting solutions, regardless of the season, is that they only look at historical data. While this can definitely give insight into roughly how business should be doing, and might help with scheduling and human resources, it’s no where near accurate enough to rely on for accurately predicting demand in the future.
By taking a look at a combination of different elements, demand forecasting software helps you improve efficiency by ordering based on what will sell, instead of ordering what may sell, leaving the remainder to sit in the stockroom. Inventory not on the sales floor isn’t working to increase profits, and is doing you and the company a disservice.