To improve inventory management, use strategies like historical data analysis, inventory turnover ratio, collaborative planning, inventory optimization techniques, economic order quantity (EOQ), and regular forecast updates. Analyze past consumption stock data to identify trends and seasonal variations. Collaborate with stakeholders to agree on demand predictions for the next 3-5 years. Implement just-in-time inventory through implementing PBA, safety stock calculations, and reorder point formulas to maintain optimal inventory levels. Regularly update forecasts to respond to unexpected demand changes.

1. Historical Data Analysis: Analyze past sales data to identify patterns and trends. 2. Moving Average Method: Calculate average sales over a specific period. 3. Exponential Smoothing Method: Weight recent sales data more heavily. 4. Regression Analysis: Identify relationships between sales and external factors (e.g., seasonality). 5. Machine Learning Algorithms: Use models like ARIMA, LSTM, or Prophet. Market Research and prove demand prediction accuracy and reduce excess stock.

In order to manage inventory levels, I feel the first thing we can refer to the historical sales data to review the reasons for the demand variation such as seasonal demand and average demand in a year it will help us to maintain our safety stock, and we should keep reviewing the forecast and inventory levels before proceeding, it will help us to identify the anomalies in forecast patterns, help us to obtain more clarity on the plan vs actual trend, and provides a better insight to maintain our inventory levels accordingly. We can also categorize our inventory based on product valuation which will become a parameter to decide the inventory levels, and ensure the team should be highly focused on the inventory turn for high value commodity.

To predict demand accurately and avoid excess stock, start by analyzing historical sales data to identify trends and patterns. Use tools like SAP ERP to track inventory levels and combine it with forecasting techniques such as ABC analysis. Focus on maintaining safety stock for critical items, while adjusting for seasonality and market fluctuations to prevent overstocking.