September 24, 2020
07 reasons to use FORECAST Squared
No matter what industry you operate in, proper inventory planning can either make or break your business! That’s exactly why 45% of companies rank inventory management as No.1 in their priority list.
Reducing the cost of logistics and warehousing and yet not go out of stock is on the top of the list for any organization. Adding to this challenge is managing a host of supplier constraints which is only amplified by having to minimize wastage, expiry, and yet have an uninterrupted flow of products in the market.
Therefore, it’s important to plan your inventory intelligently and maintain a highly efficient supply chain. Using FORECAST² is a fast, simple, and hassle-free means of solving your inventory planning problems. Here are 07 ways in which FORECAST² helps you optimize the inventory planning process.
Take a bottom-up approach to your forecasting and start at the most micro level to get a holistic view of your demand. This would help you optimize order quantities and stock levels at SKU level, store level, distributor level, or even the regional level and help you align forecasts with your supply chain and order frequency.
Work with the most suitable and accurate forecast frequency that supports your ordering cycle: monthly, weekly or even daily. This will help you determine the shortest order cycle for products such as perishables and longer order cycles for products with longer shelf life.
Considers not only demand fluctuations but also supply variations
Having generated consumer demand fluctuations in the FORECAST² system, now you can combine these demand fluctuations with your suppliers’ variables to draw the most optimal order plans that ensure you are neither overstocked or understocked
FORECAST Squared lets you account for uncertainties associated with lead times for each SKU and combine it with pending deliveries to generate an order plan with the least risk. Now you can pick the best order plan best suited for your business out of multiple simulations.
Consider key parameters of current inventory
FORECAST² automatically considers the key parameters of each individual SKU such as transit & warehouse constraints, expiry, shelf life lead time, etc in the current stock prior to generating a new order plan. This will ensure you minimize wastage and maximize on the capital spent on ordering new stock.
Configure disruptive events
FORECAST² lets you configure exceptional events such as natural disasters and pandemics. Advanced algorithms tidy out data disruptions and assume historical patterns to let you have uninterrupted forecasts.
Exploit the ultimate benefit of Machine Learning and Deep Learning algorithms to reduce human subjectivity and plan with both scale and accurately!