Thursday, September 20, 2012

4 Signs Your Business Is Ready For Demand Forecasting Software

Are you wondering if your business is ready for demand forecasting software? The fact that you're wondering is a good indication that your business is most likely ready for forecasting software. In case you need confirmation, here are a few signs that it's time to pull the trigger and go for it.

1. You've experienced significant inventory problems. Have you experienced shelf-clearing inventory followed by an overstock, followed by another emptying, and more overstock? These fluctuations may be dismissively chocked up to, "Oh, it's a weird market." Yes, just about every market has its oddities, but consistent inconsistency indicates a problem. Demand forecasting can help to alleviate the pain of such miscalculations, and put you on track for more effective outbound shipment and accurate customer order calculations.

2. Competitors are joining the marketing, leaving the market, or otherwise upsetting the market. The best way to get ahead in most business situations is not to ignore the competition, contrary to the advice of some business improvement motivators. Instead, you need to be smarter than the competition. The way to become smarter than the competition is to possess better data than the competition. Demand forecasting is the kind of data that you need. Most businesses fail to realize that a key reason why they're struggling in a competitor-crowded marketplace is because they have insufficient information. It's not just that they're suffering at the hand of powerful competitors. Demand forecasting data gives you the information that you can use to outsmart the competition.

3. You have an inquisitive board of directors. As you lead your organization, you are accountable -- to a board or to your shareholders. Being able to make more accurate forecasts as to demand is the best way to keep them satisfied about current conditions and what the future will hold. Give them the predictive data they deserve. It's the best way to convince, clarify, and communicate the way ahead.

4. Your customer base is nebulous, scattered, or unpredictable. Customers are the lifeblood of your business. But what if you don't know your customers very well -- or even how to find out more about them? Demand forecasting helps you understand your customers, their behavior, their appetite for purchasing, and their history. With powerful tools like theses, you'll be able to casually model your customer base so you'll be better to gauge their needs. Chances are, such data will improve your business.

Finally, if economic times are uncertain, demand forecasting software is a good idea. At present, with economic stability being a vestige of the past, every business could use the insight and power of better information to plot the path ahead. Even with demand forecasting software you won't be 100% accurate all the time but having all the information you can certainly helps.

The more growth you experience in your remanufacturing and distribution business, the greater your need for demand forecasting software becomes. Whether you are in need of business planning or revenue management solutions, Lorie Woodard recommends you start with Demand Foresight. Visit to learn more about forecasting software.

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