Demand forecasting systems are sure to improve the operations of your company. This article will cover 3 areas that will be benefited, but know there are many more.

What’s your favorite store? Do you frequent Amazon, Aldi, Harrods, Tesco, or Ikea? Most people have been to, or at least heard of Harrods.

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Harrods is a luxury department store, offering products from multiple high-end brands. Their mission statement is, “…the number one department store in the world for luxury branded merchandise, maintaining an unprecedented level or retail standards, expertise, and profitability.”

Harrods is known for having unmatched customer service, and they believe that’s a large reason their customers return to their stores. They offer men and women’s clothing, accessories, beauty supplies, furniture, décor, food & wine, and more.

How can a company like Harrods be able to offer all these products and maintain a reliable inventory? Satisfying customer service only builds off customers being able to purchase what they want, when they want to.  There’s a simply answer to this question.

Demand Forecasting Software

Demand forecasting software is your inventory’s best friend. Using advanced algorithms, this software creates forecasts that predict what demand for your products is going to look like. These forecasts can then be used in a variety of ways.

-        Inventory planning

When you have reliable predictions of what future demand will look like, you’re aware of what products are going to range in popularity. This gives you power. With this knowledge, you can order accurate amounts of inventory. You can avoid issues caused by both overstock and stockout situations. Your warehouse operations will improve as well, as your crew manages only the inventory that will actually sell. They won’t have to find spaces for extra products or deal with orders that can’t be filled due to insufficient inventory.

-        Marketing

This is an exciting benefit of retail demand forecasting software. When you know what products are going to do well, you can have more directed advertising efforts. You can advertise and ensure the sales of items predicted to do well. If you already have inventory, and it’s forecast to not sell well, you can market those items with specials and try to still make some sales.

-        Finances

Demand forecasting systems are sure to benefit your revenue. As you get a better grip on your inventory, you’ll save money often lost to overstock and stockouts. With dependable forecasts, you’ll also have a clear perspective on what your finances are going to look like. The days of eyeballing your expenses and income are over, as demand forecasting systems often include financial planning tools.

If your business offers products or services to the public, demand forecasting software is sure to improve your operations in many ways.

The holidays are quickly approaching, and customers are already noticing popular products being sold out. In today’s crazy world, you can never be too prepared for what’s going to be thrown your way. If you want to be prepared to meet the constantly changing demand of your consumers, then you better get your hands on some retail demand forecasting software.

There are many options for demand forecasting systems, and it’s important to do your research and find the option that’s the best for your company.

While they seem wonderful on their own, it's critical to consider all quantitative and qualitative forecasting methodologies when forecasting demand. For example, Nave Forecasting is a typical technique that, when used with other techniques, can aid inventory planning.