Using prior performance to forecast future sales will help your business increase revenue. Looking back to see how much product was sold, how quickly inventory turned over, and which products did not sell, can all help you plan for the future.
Accurate Inventory Count = Accurate Forecasting
There is a direct relationship between forecasting and inventory management. Knowing how much inventory has sold in the past, and using that information to approximate how much you expect to sell in the future, can help you have the right amount of inventory when you need it. This data needs to be available in real time in order for it to be relevant. Used properly, this will ensure that there will be no extra inventory wallowing on the shelves and taking up space. It also means that you won’t experience inventory shortages and be unable to fulfill customer demand.
This is no simple task. You need a way to have all that data at your fingertips. How are you supposed to keep track of all that information? While this seems like an overwhelming task, having the right inventory management system in place will make forecasting as easy as snapping your fingers.
Customizable inventory management software is able to track your inventory level and turnover easily. With access to this information in real time you are able to make informed decisions about managing your inventory. For example, which item quantities should be increased, which items should be discontinued, and which items should only be stocked during peak season, are all details that are important to track. Once you have a handle on all this data, you will see how much money you will save down the line. If you don’t have your capital tied up in unsold inventory, you will have financing to increase quantities on those items with a higher turnover rate. As long as you are able to predict how much will actually sell, you will always have the correct amount on hand to fill customer demand. This is a balancing act. You want there to be enough but not too much. Having the correct commerce operations platform behind your forecasting tools will help.
Forecasting Helps your Bottom Line
With SkuNexus’s fully customizable inventory/order/warehouse management platform, you can have all of this information at your fingertips. With SkuNexus's robust commerce operations platform running your backend operations, you will have the information you need in real time. Forecasting future sales helps your bottom line. You save money by not purchasing too much of those items that have a slower turnover rate, and you have enough money to keep stocking those items that have a higher turnover rate.
Click here to see how SkuNexus will maintain accurate inventory counts and help you use your prior performance to predict future sales!