The two universal desires. Nearly everyone on this earth wishes they had more time and more money. You could work more hours to earn more money. Or you could work fewer hours and have more free time. But, how can you achieve both? When it comes to businesses that carry inventory, a great forecasting system can help you achieve just that.
There are only 24 hours in each day. You can’t create more hours, but you can become more efficient. A forecasting system can increase efficiency in all areas of a company, benefiting the company and its employees. A forecasting system allows employees to work smarter, not harder by:
Bringing all vital information together into one location, opposed to having to pull into spreadsheets from different locations. There is no more wasting time collecting the data or manipulating formulas in spreadsheets.
Reducing the amount of time it takes to make sales analysis and forecasting decisions. Exception reports allow Planners to focus on priorities. Having all the necessary data that goes into making informed decisions available in one place also provides efficiency.
Generating consistent reports in an efficient manner that enable management, purchasing and finance to make strategic decisions.
Prioritizing Production needs, resulting in operational and personnel efficiencies.
Providing the Warehouse and Distribution Teams with demand expectations so they can determine the proper placement of items (for example, high demand items closer to the shipping stations result in fewer steps, less time) and staffing needs.
Clients of [basic-code] ™ typically realize ROI within the first 18 months of use and go on to realize even greater savings and increased revenue directly related to use of the forecasting software. Examples of increases to the bottom line include:
Savings on inventory carrying costs. By having visibility to their inventory and the data analysis provided in a forecasting system, companies can reduce unproductive inventory. Carrying costs typically represent 25% of the total inventory value, so reducing unproductive inventory can have a big impact on the bottom line.
Increased revenue due to fewer stock-outs and decreased shipping costs due to fewer rush shipments. By using a forecasting system, companies are able to more accurately project future demand. By factoring in current inventory on hand and on order and vendor lead times against future demand, alerts will let a company know when additional orders need to be placed.
Lower markdowns and obsolescence due to having fewer overstock issues. More accurate forecasts lessen overbuys. In addition, sales trends are detected very quickly, so timely action can be taken if an item isn’t selling as well as it should be.
Increased efficiency results in human resource savings. By gaining efficiencies in the Planning Departments, the Distribution Center and Production areas of the company, companies are often able to increase productivity without increasing staff. This is especially important in a tight labor market.
An increase in Market Knowledge. The Sales and Marketing Teams can gain valuable insights into sales trends very quickly through the use of a forecasting system. This gives them a competitive advantage in the Marketplace.
A great forecasting system will make a company more efficient, thus saving time and increasing savings. It will also enable a company to increase revenue by helping them optimize their inventory levels. For more information on how [basic-code] ™ can help your company save time and make more money, contact us today!