What is the purpose of demand planning or sales forecasting?
Through demand forecasting, short, medium, and long-term sales planning can be achieved, helping to visualize expected demands based on advanced mathematical models in order to optimize transportation and capacities. All of this is made possible by sales forecasting software.
By knowing the quantities to supply accurately, it is possible to try to adjust the process of purchasing raw materials, manufacturing, and product distribution.
Moreover, this is a great advantage for companies themselves, as knowing the number of units to be manufactured gives the company a competitive edge that can lead to cost savings in procurement, production, and transportation.
What are the objectives of demand planning or sales forecasts?
By using sales forecasting software to make demand forecasts, the aim is to achieve a reduction of unnecessary costs, such as those related to personnel, production, and storage, among others. This leads to various main benefits, such as:
- Adjusting the company's production needs.
- Adapting the company's personnel and resource requirements.
- Obtaining an annual, monthly, and weekly financial plan.
- Optimizing the production of references.
- Storing the necessary stock.
What is the process for making an accurate sales forecast?
The procedure to obtain a reliable sales forecast using sales forecasting software is as follows:
- Loading historical data.
- Data cleaning.
- Statistical forecasting.
- Business intelligence.
- Validation of the obtained sales forecasts.
- Consensus demand plan.
- Constant review of demand forecast, analysis of deviations.
Sales forecasting is an undeniable factor in the success equation of any company.