Inventory forecasting helps keep track of demand and sales for you to handle the purchase orders better. Inventory Forecasting depends on factors like sales history, trends, demand, reorder point, average lead time, and safety stock to make a calculative guess on the inventory levels to stock. Following is an infographic on the step-by-step process for optimal inventory forecasting.
All forecasting models draw information from the wavering trends in consumer demands. The more accurate your model is, the more profit margins you will be able to push. The four major inventory forecasting methods include trend, qualitative, quantitative, and graphical forecasting.
Inventory Optimization is finding the balance between demand and supply and it involves 3 main processes- Manage, Control, and Forecast. Getting these steps right is how organizations prevent any business misapprehension that might occur.
Check out all the terms, techniques, and process related to inventory management here.
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