See Differences Between Demand Forecasting and Sales Forecasting for Inventory Replenishment
Demand Forecasting software will measure and account for Lost Sales, overstock and closeouts. These are three pitfalls of not having a demand forecasting software solution. Sales forecasting methods doom you to repeat last years sales. Without real Demand Forecasting, tracking lost sales is only a KPI.
Unless the lost sales are automatically incorporated into the forecast method, it’s a sales forecasting solution. Closeouts, Overstocks and promotions also impact future demand. A demand forecasting solution will incorporate relevant POS data into a replenishment demand forecast using sales by events like lost sales, promotion, closeouts.
This video is a tale of two businesses. One business uses sales forecasting software, the software description – said demand forecasting?!? The other business uses a cutting edge demand forecasting solution, watch and see if their results are familiar.
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