Forecasting - Key Concepts:
If products are your business, success is a balancing act. You need to be able to actively and effectively secure sales and efficiently manage the process of getting goods to the customer.
Given the inextricable interdependencies of sales and operations planning, ongoing success for a growing or large business is only feasible if you’re able to accurately forecast demand and integrate forecasting into your sales and marketing plans.
Accurate, integrated forecasting gives you the ability to strategically direct your businesses to achieve competitive advantage on a continuous basis:
optimise marketing, sales, financial control and purchasing
formulate effective marketing strategies for products
accurately set purchasing quotas
confidently and cost-effectively schedule advertising expenditures and sales promotions
establish operating budgets and manage cash flow and capital budget / expenditure decisions
reduced excess inventory
fewer stock shortages which result when demand exceeds supply
fewer unnecessary production line changes to fulfil unanticipated demand
improved customer service levels as supply and demand balance
more economic purchasing power