Here's how you can master inventory forecasting and demand planning.

-Identify your products or services and Prioritize your forecasting efforts accordingly, focusing more on high-value or high-demand items you can use ABC-XYZ analyze to find it. -Utilize advanced analytics and algorithms to detect subtle changes in demand signals, such as social media trends, market sentiment, or economic indicators. Incorporate customer feedback, reviews, and complaints into your forecasting process. -Monitor your performance in forecasting with KPI's such as Forecast Accuracy, Forecast Bias, Tracking Signal and finally do check with your best industry standard in inventory turnover KPI.

Data is the core of all inventory forecasting and planning. Academically, correct data and certain demands should correct this. However, in today’s changed scenarios of outraging ambiguity and supply chain disruptions, there are 2 major steps to be taken to bring certainty to planning and forecasting, 1. Visibility and transparency over your end to end database (whether good or bad being irrelevant) is a must. For this a tool like Celonis is extremely useful 2. Change Management: Ensuring that all data points are entered in the main demand and planning tool (could be SAP or any other tool) and not stored in a sharepoint to which only 3-4 people have access All data ( whether upstream and downstream ) is connected.

In the supply chain space, understanding the nuanced differences between certain types of data is key to successful forecasting and mitigation planning. For instance, if purchasing data is utilized, the end user and organization is subject to recency bias that may only be tied out to that period of time. Furthermore, poor purchasing practices are tied into procurement data (including a lack of data if items were not purchased through an established purchasing channel). Utilization data, or data pulled from inventory software or even charge master systems, can give the user a better estimate of demand and utilization and will avoid overselling the need for additional product on the shelf. This, in turn, helps reduce holding costs.

To master inventory forecasting and demand planning, leverage data analytics, historical sales data, and market trends. Employ forecasting models like time series analysis and machine learning, incorporating customer feedback for accuracy. Implement an efficient inventory management system with real-time visibility and automation to optimize stock levels. Continuously monitor and adjust strategies based on performance metrics for agile responses to market shifts, ensuring improved customer satisfaction and profitability.

In my experience understanding data is about having clear and clean data first without fluctuations. The data I look for is - the historical data of the current month MTD and last years same period YoY basis, plus new trends hitting the market. -

Utilizing cutting edge technology is essential, understanding the current inventory plus keeping an eye on the upcoming business and seasons by implementing revenue forecasting sessions will help crucially in keeping a healthy level of inventory with our affecting quality and cost.

Some parameters need to set before running the software, this step is crucial to make the software useful, gather as much as possible historical data so you can use it as a sample scenarios with a various possibilities and output

You always hear “you can’t apply poor process to great technology.” I have also learned the inverse is true - you can’t apply great process to poor technology. Great process has to be applied to great technology to realize a positive outcome of the optimized solution you are trying to solve.

This is a great point and extremely important especially for retailers/ distributors who has short supply chain. In my experience, a real time checking is very necessary to respond to today’s volatile demand, change in every minute can possibly impact your decision. In many circumstances with those products that are difficult to forecast, dynamic reordering and real time tracking are effective ways to achieve operational excellence. Don’t get stuck in forecasting, best utilize some tools to only understand sales history and pattern, simplify your operation / processes and prioritize your efforts, you will gradually feel the pulse!

To be updated with the latest technology is very much need of the time. But, being said this, it is also critical to know what the end result we are looking for, how is this result going to effect the way we do business and how much prepared are we, the business and the people, to absorb this to our system. Often in our daily work life we are flooded with data. The very important thing we need to focus is to figure out what is the line between useful and useless data.

Would like to add from my Retail experience, towards implementating systems & its benefits - In one of my Previous Retail Organizations (which was an MSME), there was no disciplined approach towards Quarterly (Every 4 months) stock take. This resulted in inventory mismatch at Size / colour / SKU / LOB & UOM level. We started Disciplined stock takes at bigger stores in every 4 months, and smaller stores, i nevery 6 months (to save some cost). We got store maangers & Area Leads to sign off post stock takes. We mapped the inventory to OTB (Open to Buy) forcasting, which in turn was mapped to all Category managers & ultimately to Buying head. We freed up, almost 2.3 Mn USD worth of Owners working capital, in as little as 12 months.

“What you don’t know can kill you.” System implementation requires a thorough understanding of the constraints of your resources (the tool or tools in question, the staff, etc.) Without the right foresight, an implementation can quickly run into issues with internal credibility with the team.

Implementation can be the life saver and the death trap. I have seen in some cases that implementation of too many systems that do not communicate across an organization makes the company siloed as well as continues to have the impact of you are only as good as the data you put in. So yes implementing a system is great but implementation of the “right” system with the “right” implementation team from the start has to happen.

Knowing your product and them implementing it in the system using technology which is essential nowadays can make you forecasting data quite clear. If you don’t know your product and using the technology basically you are making things more difficult for the full team rather than be a help. So product knowledge+system implementation+technology =best forecasting and inventory system

N?o somente na área de planejamento de demanda e gest?o de estoques, mas também em todas as outras áreas, o aprendizado contínuo é fundamental. Profissionais que se atualizam sempre e que gostam de por em prática esses novos conhecimentos, quase sempre se destacam e trazem solu??es interessantes para diversos problemas antigos. Conhecer novos métodos e novas ferramentas, permite olhas o horizonte com novas perspectivas. Estimular os profissionais a buscar esses novos conhecimentos engrandece n?o somente o profissional,mas também os gestores que apoiam essa prática.

In able to adjust inventory management to better help the company is learning beyond what you are trained to do. Learn and implement changes that are tailored to making the process easier and more efficient. Whatever takes longer then it should needs to be pulled out, evaluated and fixed. -Sam

The evolution of warehousing-distribution systems, supply chain/value chain analysis, tech heavy e-Commerce should in itself be self explanatory... remember that we all had to start somewhere. Knowledge transferred is knowledge gained. I suggest 2 very old books, the first about bottlenecks (not a spoiler alert) "The Goal by Eliyahu M. Goldratt and Jeff Cox is a business novel that emphasizes the importance of optimizing the production process as a whole, instead of focusing on individual parts. Through the story of a plant manager, it offers insights on how to improve efficiency and increase profits" and "Who Moved My Cheese? by Spencer Johnson"

In my experience collaboration is key in any job The collaboration to land a project is working cross functionally that everyone is aligned to achieve the end goal. This will take everyone in the same journey and celebration at the end achievement

Success of the businesses depends on the collaborative efforts of the individuals and departments involved in achieving the organisational goals set. The working culture as independent silos is most toxic and brings failures in all streams. For eg; without a proper sales forecast, demand planning can not plan, logistics can not plan shipments, finance can not allocate budgets or marketing can not propose future promotional activities. This is applicable to each and every department. Sales can not sell without the knowledge of what stock is held in warehouse or what support they are going to get form marketing department when they are in discussion with a prospective client.

By maintaining open lines of communication with sales, marketing, and operations teams, you can gather diverse insights that influence demand predictions. Regular meetings to discuss upcoming promotions, market trends, and consumer behavior can enrich the data used for forecasting.

Yes, fully agree! Communication with sales, marketing, and customer service teams is extremely important for promo. /events to not only timely sense the customer/market change but also to collaborate end to end supply chain to improve customer service level and minimize your cost at the same time.

I Suggest: Gather historical sales, stock levels, and external factors to spot trends, marketing campaigns, competitor moves. Choose the right forecasting method - trend analysis, moving average. ERP can automate calculations and boost accuracy. But remember, forecasts are living documents. Regularly compare them to actual sales and adjust as needed. Be ready to adapt to surprises! Sudden demand spikes or supply chain hiccups require flexibility. Numbers are important, but don't forget the human touch. Sales can provide insights into upcoming promotions or market trends. Clear communication between sales, purchasing, and marketing is crucial for a winning team. By combining data analysis with human expertise and adaptable planning.

I prioritize building strong collaboration with suppliers and other stakeholders to ensure seamless communication and alignment of goals. By staying agile and responsive to changes in the market, I can optimize inventory levels and meet customer demand effectively.

Love this article lol… this is exactly how I manage my portfolio and I have my own performance tracking to evaluate my insight and decision, I always adjust on ordering policy/safety stock etc whenever necessary for continuous improvement. To stay agile and be responsive and fast in actions are very important to achieve business objective.

There is no full stop for improvements. Change is inevitable and no system is perfect. Any system or process needs to be monitored regularly to understand any abnormalities or improvements that needs to be required. A regular follow up of progress made and processes in place must be scheduled to keep an eye on unfavourable changes. All stakeholders must come together and discuss this in a common platform to better know the working of the strategies adopted and any fine tuning or modification that is required as a need of the time. Today's market is very volatile and competitive that any possible delay in decision making could loose a mammoth opportunity which will surface soon.

Historical data, insights from data mining based on trend will help but all the above listed represent a great avenue on how to master sales forecasting. Margin of error should play around 95% to all some elements of learning. Working capital projections and slow moving products must be factored to ensure their efficiency and effectiveness

La clave para una gestión inteligente de un inventario es la excelente administración de tendencias y bases de datos... Esta información te dará mayor claridad para determinar la dirección a tomar. TE dará las bases para una mejor planeación de compras, una mejor planeación logística, una mejor planeación financiera y por supuesto una mejor administración del inventario en cuestión. Aquí lo interesante será confirmar si efectivamente tienes las herramientas adecuadas para obtener información de calidad respecto a tus tendencias de compra/venta ya sea de manufactura o productos en general como terminados. Y ahí es donde entonces deberás partir realmente.

To master inventory forecasting and demand planning, start by collecting historical data and analyzing trends. Utilize forecasting models like time series analysis and machine learning algorithms to predict future demand accurately. Incorporate external factors like market trends, seasonality, and promotions into your models. Regularly update forecasts based on real-time data and adjust inventory levels accordingly. Establish robust communication channels with suppliers and stakeholders to respond swiftly to changes in demand. Continuously evaluate and refine your forecasting processes to improve accuracy and efficiency. Embrace technology solutions for automation and optimization, ensuring agile and proactive inventory management.

A fluid systematically forecast can help you to reach the max output of the forecast, means that your forecast should be able to adapt to the latest trend of the situation, it should be absorb the last minutes input and transform them into a more valid data.

Aprimoramento contínuo, disciplina, mensura??o, constancia e atitude, s?o fatores primordiais para planejar demanda e gerir estoques. N?o adianta somente medir e n?o tomar atitude, assim como também n?o adianta somente adquirir conhecimento e n?o usá-lo. Os maiores profissionais que conheci s?o hands-on, ou seja, colocam a m?o na massa. Aplicam os conhecimentos adquiridos, acompanha e mensura os resultados obtidos, corrigi e retroalimenta o processo. Esse é o ciclo para se atingir melhores resultados.