demand forecasting Archives - Business Intelligence

Tag: demand forecasting

demand and supply

Building a Resilient Supply Chain for a CPG Company to Navigate the Covid-19 Crisis Using Demand and Supply Mapping Solution

The coronavirus outbreak has put many industries in a state of flux, and the consumer packaged goods sector is hardly an exception. Shortage of essential supplies and empty shelves of supermarkets are some of the visible impacts of the global supply chain disruptions caused by the Covid-19 pandemic in the CPG industry. Consumer packaged goods companies that are dependent on global sourcing are severely impacted as major countries such as China and the US have temporarily stopped global exports. If the same situation continues, it could create severe impacts on the global economy and lead to an unforeseen disruption of business operations. As such, consumers packaged companies should take actions to mitigate supply chain disruptions and build a resilient supply chain for the future.

For an in-depth market analysis on how COVID-19 is impacting your industry and data-driven insights to plan your next moves, request a FREE proposal.

Business Challenge

The client is a leading player in the Canadian CPG market. Leveraging over 20 years of experience, the client operates over 150+ retail outlets in and around Canada.

As the consumer packaged goods manufacturer solely depended on China for its raw materials, the rapid spread of the covid-19 pandemic compelled the client to bring operations to a complete stop. This subsequently resulted in a palpable short-term impact on the company. Even the client was unable to serve their customers’ demands due to warehouse discrepancies and inventory shortages. In an attempt to cover up for the losses and reassure customer trust, the client was looking to understand the demand impact specific to the business and devise short-term demand-supply synchronization strategy. However, considering the complexities involved owing to the rapid spread of the covid-19 pandemic, this seemed to be an uphill task that required understanding changing customer buying behavior and activating alternative sources of supply. This is when the client sought to collaborate with Infiniti Research to leverage their expertise in offering demand and supply mapping.

By leveraging Infiniti’s demand and supply mapping solution, the client also wanted to:

  • Conduct scenario planning to assess the impact of the covid-19 pandemic on their business operations
  • Determine required supplies and manage demand and supply requirements
  • Identify the company’s direct suppliers and understand their ability to meet supply requirements and potential risks
  • Understand the flexibility of key suppliers to shift production and purchase order fulfilment to other locations
  • Activate secondary supplier relationship to secure additional inventory and capacity
  • Improve visibility to supply chain risks
  • Focus on production scheduling agility

We have helped leading retailers and businesses globally with robust market intelligence and timely insights to formulate well-rounded, data-driven business decisions. Contact us here.

Our Integrated Approach

As a part of the demand and supply mapping engagement, the experts at Infiniti Research followed a four-phased approach.

#1: The initial phase of the demand and supply mapping engagement involved creating transparency on the multitier supply chain. This involved working closely with production teams to identify materials sourced from high-risk prone areas due to the coronavirus outbreak. This phase of the demand and supply mapping engagement also involved establishing a recovery plan for critical suppliers.

#2: The next phase of the demand and supply mapping engagement involved optimizing production and distribution capacity. Also, aligning IT system and support to ensure employee safety and support work requirements was done. Besides, the experts at Infiniti Research focused on conducting scenario planning to understand the impact of the covid-19 pandemic on the client’s operations.

#3: The third phase of the demand and supply mapping engagement involved managing cash flow. The experts recommended the client to focus on freeing up cash locked in other parts of the value chain and negotiating with suppliers.

#4: The final phase of the demand and supply mapping engagement involved focusing on Tier 1 supplier risks. This was done by gaining visibility into Tier 1 supplier inventory, warehouse, and order fulfilment status.

Results Obtained

With Infiniti’s demand and supply mapping solution, the client was able to create transparency on multitier supply chains by establishing a list of critical components, determining the origin of supply, and identifying alternative sources. Also, the experts helped the client to estimate available inventory along the value chain and manage demand and supply requirements. Besides, the client was able to optimize production and distribution capacity to ensure employee safety.

Also, the client was able to understand the demand impact specific to their business and subsequently devise a short-term demand-supply synchronization strategy. Moreover, by evaluating alternative inbound logistics options, they were able to maintain productivity and maximize profitability.

The experts recommended the client to develop a treasury plan for focusing on cash flow. Besides, the experts helped the client to identify their key direct suppliers and understand their ability to meet supply requirements and potential risks. This further helped them to efficiently manage inventory and capacity shortages.

The experts also helped the client to identify alternative suppliers in non-impacted regions of the world and improve visibility to supply chain risk. As a result, the client was able to build a resilient supply chain for the future and manage warehouse discrepancies and inventory shortages.

Find out how we can help your organization to prepare for the rebound, gain agility, and ensure rapid response

heavy electrical equipment

Infiniti’s Demand Forecasting Solution Helped an Industrial Equipment Manufacturer to Reduce Operational Cost by 27%

Demand Management Solution for an Industrial Equipment Manufacturer

Leading players in the industrial equipment manufacturing sector are facing predicaments such as lack of insight into the supply chain, resource management issues, and engineering challenges. Moreover, with rising market competition and increasing technological advancements in the industry, industrial equipment manufacturing companies are pressurized to invest in technology and fulfill customers’ demands by accurately managing inventory requirements. Consequently, industrial equipment manufacturers are partnering with firms like Infiniti Research to leverage their expertise in offering demand forecasting solution.

Are you facing challenges in accurately forecasting the inventory requirements for your organization? If yes, our demand forecasting solution can help. Request for a FREE proposal today!

Business Challenge

The client is a European industrial equipment manufacturer and supplier. The client’s unstructured approach to inventory management hugely impacted the company’s overall sales rate. This even increased churn rate by 27%. Subsequently, the company witnessed a huge dip in their profit margin and started losing market share to their competitors. The client, therefore, realized the need to leverage demand forecasting solution and approached the experts at Infiniti Research. With Infiniti’s demand forecasting solution, they wanted to reduce inventory errors, better plan supply chain requirements, and efficiently allocate resources.

Other challenges faced by the industrial equipment manufacturer were:

Industrial equipment manufacturer challenge #1

Inadequate inventory planning– The industrial equipment manufacturer was facing challenges in planning the inventory operations and efficiently supplying industrial machinery according to the market demand. The lack of insights into the supply chain was one of the reasons behind this. Therefore, the industrial equipment manufacturer wanted to leverage Infiniti’s demand forecasting solution to better plan their inventory operations.

Industrial equipment manufacturer challenge #2

Resource management – The constant change in the demand for industrial machinery made it challenging for the industrial equipment manufacturer to efficiently manage their workforce. This even impacted the company’s bottom line. The client, therefore, wanted to forecast the demand for products in advance and better manage the workforce.

Industrial equipment manufacturer challenge #3

Customer experience management – By leveraging Infiniti’s demand forecasting solution, the industrial equipment manufacturer wanted to reduce risk in supply chain operations and keep inventories optimized. By doing so, the industrial equipment manufacturer wanted to reduce the churn rate in the company and attract new customers.

Get in touch with an expert to know how we can help you solve key business challenges.

Solutions Offered

The experts at Infiniti Research followed a three-phased approach to demand forecasting. In the initial phase, the experts analyzed in detail in the equipment manufacturing industry in Europe and identified regulations and changes that impact the business operations. The next phase involved analyzing the sales rate of the top industrial manufacturers in Europe. This phase of the demand forecasting engagement helped the client to understand the peak periods for industrial machinery. In the last phase, the experts identified constraints that impede the production process of the company.

With the insights obtained from Infiniti’s demand forecasting solution, the client was able to streamline their supply chain structure to meet the evolving market demand. Also, by analyzing factors impeding the production process, the industrial equipment manufacturer was able to make informed business decisions and understand the spikes and dips in machinery demand. Furthermore, the industrial equipment supplier was able to increase revenue opportunities and reduce inefficiency.

Within a short period of eight months, the industrial equipment manufacturer was able to better plan the supply chain, efficiently allocate resources, and manage customers’ needs and requirements. In addition, the industrial equipment manufacturer was able to enhance the sales rate and reduce operational cost by 27%.

Infiniti’s demand forecasting solution has helped various global players to improve sales and operational planning. CONTACT US to know how our demand forecasting solution can help your organization.

Demand Forecasting in Retail: Critical Mistakes to Avoid

Companies in the retail industry rely on demand forecasting to support inventory planning and distribution functions across their sales channel. Accurate demand forecasting requires companies to have a clear understanding of the right data and the repercussions of incorrect demand estimation. If done correctly demand forecasting techniques can help companies across the consumer goods spectrum to optimize operations and increase value while reducing additional costs. However, the absence of an accurate demand forecasting strategy could result in a faulty business strategy. To avoid this, we uncover some common mistakes made by companies in the retail industry during demand forecasting.

Smart forecasting is a powerful tool in today’s increasingly competitive retail landscape. Request a free proposal to know how we help companies to make information-driven decisions that optimize revenue.

Demand forecasting mistakes in the retail industry

demand forecastingIgnoring store-level demand

Sometimes retail companies tend to build demand forecasting models using a top-down approach in order to speed up and simplify the forecasting process. However, by not using an individual location-level unconstrained demand forecasting can result in significant under-prediction while estimating the actual demand. Furthermore, computing demand forecasts solely against prior sales don’t account for lost sales due to out-of-stocks, causing any forecasts for the future to be artificially depressed, and the cycle to continue.

Planning solely for distribution channels

Sometimes companies in the retail industry make the mistake of using demand planning solely to enhance their distribution channels and make it more efficient. Retailers will be able to churn out more from their investment if they rely on the data to optimize the production process as well. Demand planning, for instance, can be used to determine what manufacturers should be producing.

Getting the most out of your demand planning tool requires you to become familiar with its features and with several concepts related to inventory forecasting. Get in touch with our experts for more insights on everything you need to know about demand forecasting for your business.

Overlooking historical patterns

Unless a company has restructured its organization recently, altered their product or service lines significantly, there should be historical data that reflects distinguished demand and sales patterns. These patterns are the best sources to use for demand planning, because while they don’t necessarily consider current changes or possible impacts to the supply chain, they give retailers a baseline against which they can build accurate numbers for demand forecasting.

Optimizing business processes too soon

This is especially true in the case of new businesses or a recently restructured organization. Accurate demand forecasting requires adequate time to gather relevant data. Businesses that tend to undertake demand forecasting based on a small dataset that ranges over a short period are more likely to end up with adverse results.

If you have experienced any of these common dilemmas in demand forecasting, we can help you take the guesswork out of forecasting and gain the kind of actionable intelligence that produces results.

Logistics management solutions

Realizing 37% Savings in Operational Cost for a Retail Company – Infiniti’s Logistics Management Solutions

Logistics Management Solutions for a Retail Company

Despite recent advancements in technology and shipment tracking systems, companies in the retail industry are facing challenges in efficiently managing supply chain processes. Indeed, today’s competitive retail marketplace necessitates retail companies to accurately forecast the product demand to enhance logistics & supply chain management.

Are you finding it difficult to accurately forecast the market demand and manage inventory requirements? Our logistics management solutions can help. Request a FREE proposal!

Business Challenge

The client is a retail supplier based out of Denmark. Due to the inconsistent nature of the product demand and capacity planning process, they were facing difficulties in managing their inventory stocks and ensuring timely delivery of products. Also, the client relied solely on historical patterns of demand to plan for the production process. Consequently, the client witnessed a huge dip in their sales rate and this subsequently affected their overall profits. To optimize their production planning process, the client approached the experts at Infiniti Research to leverage their expertise in offering logistics management solutions.

Other key objectives that the client was looking to achieve by leveraging Infiniti’s logistics management solutions were:

Enhance inventory visibility and metrics – Due to lack of inventory visibility, the client faced challenges in planning their production and distribution process. This further increased the storage cost for the company by 2x. Therefore, with Infiniti’s logistics management solutions, they wanted to analyze the demand patterns and enhance their inventory visibility.

Build a reliable order fulfillment process – The company’s unreliable order fulfillment process often led to shipment delays, thereby increasing customer churn rate. To tackle this challenge, the client wanted to streamline their order fulfillment process with the aid of Infiniti’s logistics management solutions.

Managing reverse logistics – By leveraging Infiniti’s expertise in offering logistics management solutions, the client wanted to implement sound reverse logistics framework and efficiently manage the product return process.

With over 15 years of expertise in offering logistics management solutions, we can help you enhance your inventory visibility and better manage production processes. CONTACT US today!

Solutions Offered

As a part of the logistics management solution, the experts at Infiniti Research conducted an inventory forecasting engagement. This phase of Infiniti’s logistics management solutions helped the client to thoroughly analyze the market demand and identify target stock levels to meet the rising demand for products.

Infiniti’s logistics management solutions also involved demand planning and forecasting. Our demand planning and forecasting solution helped the client to enhance the accuracy of their demand forecast. This further helped the client to improve production capacity and optimize their supply chain operations.

Lastly, the experts conducted retail market scanning and monitoring. This phase of Infiniti’s logistics management solutions helped the client to keep pace with all market transformations in the retail industry. By doing so, the client was also able to better manage their inventory by understanding demand fluctuations in the retail market.

Results Obtained

With Infiniti’s logistics management solutions, the client was able to enhance the accuracy in demand forecasting by 25%. Also, the logistics management specialists at Infiniti Research helped the client to implement reverse logistics management framework to efficiently manage the product return processes. Also, enhanced inventory visibility helped the client to better manage logistics requirements and timely deliver products. As such, the company realized a 37% savings in operational cost.

Request for more info to know how our logistics management solutions can help your company to enhance the accuracy in demand forecast.

sales forecasting methods

Everything You Need to Know about Using the Right Sales Forecasting Methods

Sales forecasting methods are used to predict how much of a particular product is likely to be sold within a specified future period in a particular market at a specified price. Using accurate sales forecasting methods is vital for any business to be able to produce and sell the required quantity of goods at the right time. Furthermore, by helping companies to gauge the demand, sales forecasting techniques ensure better inventory management.

Why are sales forecasting methods important?

By leveraging the right sales forecasting methods that suit the business, companies can spot potential threats and demand fluctuations while there is enough time to avoid and mitigate them. For instance, if a business uses sales forecasting techniques and notices that their team is trending much below quota, it gives the business the opportunity to understand what is going wrong and undertake a corrective course of action. Discovering such problems at the early stage rather than at the end of the month or the quarter makes a huge difference to the overall sales. Sales forecasts can also be taken into consideration for a decision including hiring, resource management, goal-setting, and budgeting.

Failing to meet the forecasted goal can significantly hurt stock prices. This can be avoided by leveraging the right sales forecasting methods and strategies. Request a free proposal to know how experts at Infiniti research can help you choose the right sales forecasting methods for your business.

Factors that affect sales forecasting

Sales forecasts are often influenced by both internal and external factors of an organization. These factors can also greatly influence the sales forecasting methods chosen by companies.

sales forecasting methodsInternal factors

Changes in sales territory

If territory assignments are shuffled, boundaries are redefined, or a new sales territory management plan is introduced, there are chances of a temporary dip in sales. However, sales will bounce back to an even higher point once the company’s sales representatives adjust to their new, optimized territories.

Changes to compensation plan

If a company decides to make changes to its sales compensation plan or commission structure, it is likely to have an impact on the sales structure. For instance, if a company switches to a structure that rewards sales representatives for increasing revenue rather than closing more deals, their forecast should anticipate fewer new accounts with a focus on targeting higher-value customers.

Changes in the team size

When more sales representatives are hired, the company will expect a spike in sales as more people on the team are working to close deals. Likewise, as sales representative quit or retire there might be a dip in sales until a replacement is found.

Changes to products or services

Whenever a business introduces a new revenue stream, releases highly-anticipated features, or restructures how offerings are bundled or priced, the changes will impact their sales forecasting methods. If a new offering enables sales reps to speed up the sales cycle or increase their win-rate, for instance, the sales forecasting methods used should reflect that positive gains.

Get in touch with our experts to learn how our solutions can help you.

External factors

Market competition

The decisions and actions of your competitors can affect the outcome irrespective of the sales forecasting methods used. For example, if a major competitor of a company suddenly discounts their prices, that will impact their ability to sell at the current prices.

Market changes in supply and demand

If companies don’t pay attention to the changes around them, sales forecasting methods used can become ineffective. If there’s a growing need for the company’s product or service, that’s a sign the business can be more optimistic in their sales forecast and projected growth (especially if there’s a gap in market supply).

Seasonality

Depending on what is being sold, a company’s sales might naturally rise and fall during certain times of the year. This is different than market changes, as seasonal highs and lows occur on a cyclical basis. Since seasonality is reasonably easy to predict, it should be factored into the sales forecasting methods in order to avoid skewing the results.

The rate of inflation

For long-term forecasting, in particular, potential inflation and how it will affect costs and pricing strategies need to be accounted for.

Learn more about Infiniti's market intelligence solutions

You may also like : 

Achieving 22% Reduction in Unfulfilled Orders for a Food Manufacturing Industry Client – Infiniti’s Demand Forecasting Engagement

Demand Forecasting for a Food Manufacturing Industry

Companies in the food manufacturing industry are facing several challenges such as volatile market demand, quality issues, supply-demand mismatch, and complex manufacturing constraints. In this context, companies in the food manufacturing industry are realizing the importance of leveraging demand forecasting solution to efficiently forecast demand and anticipate sales.

Are you constantly facing conditions of stockouts and overstocks? If yes, Infiniti’s demand forecasting solutions can help. Request a FREE brochure to gain more insights into our services portfolio and learn other benefits of leveraging our demand forecasting solution.

Business Challenge

The client is a food manufacturing company based out of the United States. The client was facing challenges in efficiently planning inventory operations and anticipating product demand. This resulted in huge loses for the company in terms of sales rate and profit margins. The client, therefore, wanted to leverage Infiniti’s expertise in offering demand forecasting solution. With Infiniti’s demand forecasting solution, the food manufacturing company was looking to manage inventory, maximize sales, and tackle production challenges.

Other challenges faced by the food manufacturing industry client were:

Food manufacturing industry challenge 1: Out-of-stock issues

When faced with out-of-stock issues, the food manufacturing industry client had to deal with unplanned production changeovers to keep up the business. This affected their profit margins.

Food manufacturing industry challenge 2: Overstock issues

On the other side, when the company produced extra products, it resulted in overstock and impacted warehouse operations.

Food manufacturing industry challenge 3: Production speed

By leveraging Infiniti’s expertise in offering demand forecasting solution, the client wanted to set up processes according to the estimated demand to speed up the production cycle.

Food manufacturing industry challenge 4: Labor management

With Infiniti’s demand management process, the client wanted to optimize labor management. They also wanted to predict the peak periods and plan their staffing needs more accurately during periods of high product demands.

Solutions Offered and Value Delivered

The initial phase of the demand forecasting process involved gathering all the available qualitative and quantitative data from market research, market testing, and buyer surveys. The experts developed a robust demand forecasting framework to help the client better plan their production, warehousing, and shipping schedules. With Infiniti’s solution, the client was able to understand the supply-demand requirements and the peak periods for their business. This further helped them in better labor management.

With Infiniti’s demand forecasting solution, the food manufacturing industry client was able to make accurate sales predictions and reduce stockouts of products. This even helped them to efficiently manage their resources during peak periods. The food manufacturing industry client was also able to manage supply and demand. The company achieved a 22% reduction in unfulfilled orders. Also, the solution helped the company to meet their customers’ demands and enhance customer experience.

Request a FREE proposal to know how our demand forecasting solutions can help your business to better plan inventory and production processes.

Challenges in the Food Manufacturing Industry

CHALLENGES IN THE FOOD MANUFACTURING INDUSTRYThe rapid transformations in the food manufacturing industry have brought about a host of opportunities for food companies. The rapid transformations have also increased challenges for companies operating in the food industry. Let’s have a look at some of the challenges in the food manufacturing industry.

  • Creating automated processes to adapt with the ever-changing consumer trends
  • Closely monitoring and complying with state and federal regulations on proper food safety and waste disposal
  • Finding skilled labor

CONTACT US to know how our solutions will help you business gain a leading edge in the market.

demand management

A Step Towards Better Demand Management: A Round-Up of Popular Articles on Demand Management

LONDON: Infiniti Research, a leading market intelligence company, has announced the release of their new storyboard series on why demand management is the fundamental driver for business growth and strategy.

With increasing competition, market volatility, and changing customer demands, companies are facing difficulties in managing product demands and satisfying their customers. Also, instances of over-stock and stock-outs results in inventory issues. They further result in customer dissatisfaction, increased expenses, and loss of sale for the company. Finally, the end result is loss of company reputation, coupled with financial losses and customer churn. In the wake of these scenarios, most companies are leveraging demand management solution which can deal with nearly all of the above risks while enhancing their efficiency level.

Infiniti’s demand management solution has helped various organizations deal with issues pertaining to analyzing and estimating consumers’ demands and other challenges such as the availability of multiple channels and proliferating SKUs. Below we have listed some of our latest articles and success stories which will give solid reasons on why demand management solution is important for your business.

Are you facing similar challenges in your business? Our experts can help. Request a FREE brochure to gain more insight into our services portfolio.

#1: A guide to the core components of demand management: One of the common challenges faced by companies is to understand the consumer demand for goods and services that they offer. This problem does not end with understanding demand patterns and purchase behavior of customers. The actual magic lies in managing these demands accurately. A demand management process involves a wide range of components depending on the unique processes of each organization. This article discusses all the key components of demand management and their benefits for an organization.

A Closer Look at Demand Management and Its Core Components

#2: Enhancing demand chain visibility with Infiniti’s demand management solution: Stock-outs are reportedly  one of the biggest concern for businesses. For businesses that face stock-outs too often, there is a risk of losing customers. Also, it can hamper the overall growth of the company. This was the same case with a chemical manufacturer based out of US. As an organization that valued the importance of uncompromised customer service, the company approached Infiniti Research for a solution. Infiniti’s demand management solution helped the client to accurately manage inventory and enhance the customer experience.

Demand Management Solutions – How it Helped a Chemical Manufacturer Enhance their Demand Chain Visibility

#3: Healthcare providers increase reliance on demand forecasting: With demographic shifts and rapid changes in policies in the healthcare sector, predicting future healthcare demands isn’t an easy task. Our client, a healthcare company in North America wanted to improve their portfolio management ability by focusing on improving the efficiency of their services and responding proactively to market demands. Our demand forecasting solution not only supported the client to develop strategic relationships with customers and suppliers, but also enhanced collaboration to create an efficient and lean supply chain, and ultimately, a competitive advantage. Read this success story to gain detailed insights.

Demand Management: A Critical Factor in Healthcare Portfolio Management

#4: Three must follow demand management best practices for medical device companies: Medical device manufacturers often face roadblocks when it comes to making their demand management process efficient. This often results in operational inefficiency and issues pertaining to fulfilling orders. So, to help you out, our experts have unveiled some of the demand management best practices in our latest article. This article also highlights how following these practices will help you in tracking the medical devices and staying ahead of competitors.

Infiniti’s Demand Management Solution Helped a Medical Devices Manufacturer to Achieve Average Savings of $7.2 Million

#5: Accurately predicting sales and allocating budgets with demand management solution: Overstock of products often result in financial losses, as companies are compelled to sell the excess products at lower costs. Our client, a food manufacturing company was facing similar challenges. They wanted to leverage Infiniti’s demand management solution to predict future demand patterns and respond proactively to changing customers’ needs. Our solutions helped them accurately predict product demand and fulfill customer orders, which subsequently enhanced profit margin for the company.

Demand Management : How Infiniti Helped a Major Player in the Food Manufacturing Industry in Achieving Supply Chain Agility

Infiniti Research helps organizations deliver sustainable business improvement. Whether it’s about defining deadlines, or setting customizable options, and automating tasks, our solutions are sure to offer you assistance. Request a FREE proposal to know how.

#6: What are the demand management best practices? In today’s competitive world, a number of companies are leveraging demand management solutions to meet the evolving needs of their business at every level. Demand management is a business process that enables organizations to respond to emerging situations in an effective manner by maintaining the right balance between supply and demand. This article uncovers some of the demand management best practices.

A Closer Look at Demand Management and Its Core Components

#7: Achieving average savings of $3.28 million with demand planning solutions: Today, the construction equipment market is at a crossroad. Therefore, companies in the industry are facing difficulties in sustaining their market share. Our client based out of Europe was struggling owing to the fluctuations in the market. They faced difficulties in managing the market demand, which subsequently resulted in profit losses for the company. By partnering with Infiniti Research, the client was able to survive this stiff competition and secure a spot in the European construction equipment market.

Demand Management Solutions – How it Helped a Chemical Manufacturer Enhance their Demand Chain Visibility

#8: Realizing savings of 27% with Infiniti’s demand and supply analysis solution: Inadequate supply and demand management can result in over-stocks or stock-outs. Therefore, it is imperative for companies to adequately forecast market demand and manage inventory. This success story highlights how one of our clients was able to achieve a 13% reduction on unfilled order and increase demand forecast accuracy with demand and supply analysis solution.

Realizing Savings of 27% in Year for a CPG Company with the Help of Demand and Supply Analysis

#9: Top demand forecasting methods for your business: Customer demands are extremely dynamic and unless organizations correctly chart out the demand patterns and ascertain the amount of goods to be produced, the chances of overstocking or understocking of goods are likely to happen. Using demand forecasting methods, companies can find what customers are buying and improvise on products that are not coping well in the market. To help such companies, Infiniti has listed the top demand forecasting methods in this blog.

3 Popular Demand Forecasting Methods to Help Your Business Reach New Heights

#10: Achieving 17% reduction in unfilled orders with demand management solution: A leading food manufacturer’s failure to anticipate the product demand not only affected their sales rate but also eroded consumers’ trust. This subsequently resulted in huge losses for the company. Read the complete success story to know the initiatives taken by our experts which helped the company in better inventory management and cost savings.

Demand Management : How Infiniti Helped a Major Player in the Food Manufacturing Industry in Achieving Supply Chain Agility

CONTACT US to learn more about our services.

3 Popular Demand Forecasting Methods to Help Your Business Reach New Heights

Demand forecasting if done properly, gives valuable information to businesses about the current potential of the market. That being said, let’s first understand what decision forecasting is in simple terms:

What is demand forecasting?

Making estimations about the future demand from customers based on historical data and other required information is called demand forecasting. It helps the managers to make calculated decisions about business growth strategies, market potential, and pricing. Demand forecasting is very essential for businesses to avoid the risk of poor decisionsAsk An Analyst_IR regarding target products and markets.

Demand forecasting is crucial for several reasons like optimizing inventory and reducing holding costs. It is also important for increasing turnover rates, providing detailed insights into the upcoming flow of cash, and human resource management in terms of recruiting staff and others to keep operations functioning smoothly during peak periods.

For companies in the retail industry, who cater to a highly dynamic target audience, forecasting the demand and market trends could prove to be a tricky task,” says an industry expert from Infiniti.

Three popular demand forecasting methods

Qualitative demand forecasting methodRequest Proposal

The techniques of qualitative forecasting are used at a time when there is a scarcity of a lot of data. For example, in the case of a new business or in the case of newly launched products in the market. In such cases, demand forecasting is done by using other qualitative tools like market research, opinions of experts in the field, and comparative analyses. Such demand forecasting methods are generally used in areas like that of technology, where the upcoming products may be unprecedented, and it becomes very difficult to assess the interest of customers’ beforehand.

Time cycle analysis

If the historical data for a product or service and its trends are available, businesses can use this approach of time cycle analysis to forecast the demand. It helps to identify fluctuations in demand based on season, sales trends, and cyclical patterns. This method is used by businesses who have experience of several years and have sufficient data to work from and have a relatively set trend or patterns.Get More Info

Method of seasonality and trends together

Seasonality means a change in demand for specific times like festivals and holidays whereas trends have no specific time and can occur due to the complete shift in consumers’ behavior. Both demand forecasting methods can be used to better plan the management of inventory, operational process, and marketing efforts. This can ultimately help your business to grow by leaps and bounds. So, demand forecasting is undoubtedly a good way to anticipate what the customers are expecting from your business in the future and also helps in inventory preparation to meet the demand.


To know more about how you can better forecast demand

Business Forecasting

Business Forecasting: The Challenges in Knowing the Unknown

Business forecasting undertaken by managers is prone to numerous biases and limited market knowledge. Over the past few years, various statistical tools and AI programs have assisted managers in improving their forecast accuracy. Human instincts combined with statistical tools and AI programs can help construct a reliable forecasting tool. However, many companies still follow an archaic process of quarterly forecasts, which is estimated by managers of respective units. The individual estimates are then consolidated and negotiated to match the final target. In this article, our experts unveil some of the common challenges in the business forecasting process.

Copy of Copy of banner IR (1)

Common Challenges in the Business Forecasting Process

Estimating Forecast for New Products

Almost all forecast tools rely on historical data to predict future outcomes. The managers do not have any historical data to refer to in the case of evaluating performance for a new product. This problem is particularly evident in industries such as consumer electronics, fashion, and books, where new product introductions account for the bulk of sales. So, an error in forecasting can result in a loss of sales opportunity. To tackle such problems, companies usually resort to historical data of similar products and assortments to build a forecast.

Lack of Quantitative Analysis

Despite the availability of numerous forecasting tools and software, most managers simply ignore using quantitative analysis for their forecasts. A majority of the managers are habituated to use a simplistic approach such as linear extrapolation and also adjust the forecast techniques to align with their instincts. Currently, business forecasting is largely inaccurate as organizations lack access or expertise to use forecasting tools.

Our business forecasting solution can help you to gather comprehensive insights into the market and industry developments. Contact us today!

Contact US

Tackling Variance in Sales Volume

An organization’s sales figure is highly dynamic and dependent on a large number of factors such as economic, political, cultural, and legal factors. It can be challenging to accurately estimate the sales volume as such factors completely disrupt the historical pattern. Various predictive models are being developed to take inputs from multiple factors such as that enhance the process of business forecasting.

Want to gather more insights into our business forecasting services and their benefits for your business? Request for more info from our experts.

Get More Info

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice