When considering, starting or enhancing your business, inventory forecasting is crucial, and here is why.
You purchase/sell inventory, and you need a way to document incoming and outgoing orders. Sure, you can guess what inventory you will move in a given week or month, but why leave that to chance? By using inventory software, you are able to better predict your replenishment requirements. Repetitive orders, which could also be considered standing orders, mean a customer will be purchasing the same inventory at the same interval for a long period of time. This makes reordering much easier and less demanding.
When reordering different products, you can't always forecast the same way. For example, say you own a small business selling winter equipment. One thing you must consider is the time of year you are more or less likely to sell. Once you have pinned that down, you can gauge how well you performed in the past years using your inventory management software. To forecast properly, you need to compare how you have performed historically during short timeframes. The reorder point is looking at sales in previous Novembers, then calculating where you could be this November and ordering based on those numbers.
Inventory management software will assist you in forecasting inventory levels. Why not give yourself an edge over competitors take advantage of all the inventory forecasting features available to you? Use hard data to build your company and stay above the mediocrity of other companies. Be proactive and be prepared by using Fishbowl Manufacturing or Fishbowl Warehouse!