How does demand forecasting improve your inventory optimization strategies?

Certainly, BI tools help improve inventory stock by minimizing requirements and also improve the correct use of budget. Learning the correct BI tool involves understanding the BI tool as a creator, and also making a correct ETL from the DWH. It's important to have a good understanding of the correct data for minimizing errors in databases and BI visualization.

Correct demand forecasting assesses the appropriate inventory level. Do you know that the amount of money you spend on inventory stock, will be frozen in a range of time if you don't take commercial action to sell the products from the inventory? If you don't know how many products will be needed within a certain time frame? You will not be able to utilize the money tied up in your inventory. This could complicate the entire company's operations.

Business intelligence tools help to gain insights into key performance indicators and provide clear visualizations of commercial data. The right inventory stock tool should be able to understand trends, patterns, and behaviours over a period of time, and prepare for upward or downward trends. Therefore, the appropriate tools will utilize commercial insights to enhance an inventory stock tool.

Plan according the market demand. Analysing market structure. Reduce inventory block Plan commodity prices and hedge them accordingly to maintain MRP.

There are 2 different industries has its own unique sales process. For instance, the jewelry industry operates on a demand-driven production model, while the food and beverage industries rely on order-based production and invoicing. This poses a challenge as it is difficult to accurately predict demand fluctuations. Therefore, we need to utilize statistical metrics to calculate our inventory stock for demand planning. In contrast, the jewelry industry fulfills specific prepaid orders. How challenging would it be to develop a business intelligence (BI) tool that caters to these two different scenarios?

An accurate Demand Forecast would help the DC / Warehouses to maintain optimum inventory, redistribute stock across DC or Geographies to ensure they are aptly filled, neither too high, nor too less. It helps maintaining minimum, safety stock as well. For many businesses, a depleting stock would mean loss in market share as customers would bounce to other company's products. On the other hand, too much inventory is always a liability, esp in food or FMCG industry where shelf life is not long. This makes a proper forecasting even more critical to maintain the inventory in a good health.