How do you ensure accurate inventory forecasting to prevent stockouts in a high-demand retail season?

I totally agree to comply with the historical data of stock movement and turnover. To add on above points - We can effectively grade our styles and stocks basis their movement in retail - eg. A, B, C, D - where A is the maximum selling stock, B<A, C<B and D is almost the dead stock to be sold at 50-60% discounts which is cut to cut the cost price of the product.. - Understanding the stock turnover ratio - Using analytic tools to quickly understand the non moving styles - Continuous planning of new SKUs as per the market requirements - Keeping close tap on the warehouse stocks and selling inventory - Demand & Supply - Promotions and applying discounts as and when required to better manage the heavy inventory as and when required

Use moving averages to smooth out fluctuations in sales data and highlight underlying trends. For example, a three-month moving average can help you see the trend more clearly by averaging the sales of the current month and the previous two months. Calculate seasonal indexes to understand how much sales in each period deviate from the average. Use regression analysis to identify relationships between sales and other variables (e.g., time, marketing spend, promotions).

Forecasting for upcoming season and then taking stocks on ur current inventory then targeting sellout based on last year data with a minimum 10% increase and planning promotions accordingly including Last 6 months patterns,trends,seasons. Analyzing is the core to the Entire plan and ensuring highest stocks level with clearly defined MSL(minimum stock level) is the key for the upcoming season.

Analyse the sales history. Check the agreed & planned progressive forecast & role out the rolling forecast for procurement accordingly which will help to ensure the optimum inventory level & avoid overstocking as per the required demand.

1. Are sales this year, of the category in question, higher, lower or the same? 2. What is the percentage difference up or down? 3. Sale of the particular product in question, higher, lower or the same? 4. What is the percentage difference up or down? 5. Use the answer to add or subtract the order quantity from the ordering formula. 6. This is only looking at historical data for the order quantity of the product, lead time, safety stock, turnover, min/max are not considered yet.

Pre planning for upcoming season is the start. It's built on the back of historical data. The earlier and more detailed you preplan the betterb your result. The only downside is you can't plan for the unforeseen roadblocks. The longer you build and plan on previous seasons the more success you'll have

By doing a Daily check on Sellout Data and trends,patterns and keeping a close eye on inventory levels and to be always on top with the supplier also to get the vendor involved in to get support.

Incorporate various factors influencing demand into your planning. Conduct market research to gather insights on current trends, consumer preferences, and competitor activities Collaborate with your sales team to gather on-the-ground insights and consider external factors like economic conditions and local events. This will help you create a more accurate demand forecast.

1. Sales forecast is made up of -historical sales data, -current years sales data, -specific events in the current year vs previous years, eg. how are global weather changes affecting the product buying patterns, -new & better competitive products or competitors to hit the market

Always better to be in this situation of having safety stocks even after the promotion period is over one can negotiate support with the brand and get it cleared out before it goes into aging challenge comes incase if you don't get support then the ideal situation will be to keep pricing at par level with all competitors movement will still happen.

Evaluate supplier lead times and their inconsistencies to ensure adequate stock during extended lead times. This strategy ensures steady product availability, especially during peak seasons in the FMCG market.

Safety stock: 1. A must for customers, specially long term, to depend on and not look for competitors. 2. Essential for business to not lose sales dollars due to poor product planning. 3. Simplest formula is (sales x lead time + safety stock +/- other factors in your area or business)

by Actively checking on sellout trends and taking decisions based on movement trends/sellout help you undertsand which stocks need to be maximised and which not to order due to low movement

Calculate inventory turnover ratios to assess how quickly products are selling. A high turnover rate indicates strong sales, while a low rate may suggest overstocking or low demand. Implement FIFO practices to ensure older stock is sold first, minimizing waste and keeping inventory fresh

1. Study inventory turnover consistently on a calendar, normally once a month or less, quarterly. 2. This helps with being on top with business changes as it’s happening. 3. Helps to plan from replenishment amounts to all the way on decisions to sell or not to sell products.

Modern technology gives everyone a leg up these days. But you have to stay in the game, up to date, team trained and tools cared for

Use inventory management software that provides real-time visibility into stock levels, sales trends, Implement advanced forecasting tools and algorithms that consider multiple variables, such as historical sales data, market trends, and promotional impact. These tools can generate more accurate demand forecasts.

Latest and most updated inventory software have reduced a lot of work and providing analysis on inventory/sales which has made it very easy for buying team do planning forecasting whether its online or offline platforms Its Imperative that a retailer has the most latest and up to date inventory system to keep par with competition.

1. Today, to succeed in any business, technology is a standard requirement, without which, you will be left behind competition quickly. 2. However, use technology with either thoroughly understanding the tool or take expert help to use it to your business advantage. 3. If you don’t to the above, simply having better technology could be a hindrance.