For many business owners, 2022 is riddled with uncertainty. There are still open questions around the Covid-19 pandemic and its impact on the economy, Brexit developments impacting supply chains, shipping container shortages, and the added worry of a potential military conflict in the Ukraine! However, despite all this it seems that there’s hope in the horizon.
According to market research specialists, consumer confidence levels are improving, which is good news for traders and manufacturers. Data shows that in-store sales were up during the 2021 festive period, despite Omicron keeping the high streets quieter than usual, and overall retail sales figures reached their highest level since the onset of the pandemic in March 2020.
Of course, knowing that demand is expected to recover, or to fluctuate, is not enough. As a trader or manufacturer, you want to have a very granular view of how demand is expected to perform this year, taking uncertainty into account, so you can plan your business operations accordingly. So how exactly can you improve your demand forecasting efforts? In this article we discuss four reasons to use specialist software to plan for a successful trading year.
1) Accurate Production Planning
In the manufacturing industry, an efficient production cycle is one of the pillars of success. Demand forecasting software puts at your disposal a wealth of information that you can use to make responsive data-driven production decisions for each product line, avoiding the risk of overstocking or undersupply.
2) Better Inventory Management
With a specialised software solution, you can have access to real-time inventory data and other crucial insights in your different trading and supply chain locations. These can help you keep wasted stock to a minimum, cut down on unnecessary storage costs and goods movements, and support optimum supply chain management.
3) Improved Logistics Planning
The best demand forecasting software can improve your supply chain planning efforts. With these solutions, you get a comprehensive view of all factors affecting internal demand planning and logistics, such as different Covid restrictions between EU countries, so you always know what your supply chain capacity is and can optimise the way you allocate resources to meet market demand.
4) Timely Product Development
Having accurate and reliable data at hand can help you plan for growth through new product development. Thanks to the information you get from demand forecasting software, you can determine when it’s the best time to launch a new or seasonal product, ensuring that customer demand is at its peak and that you can cope with it from a logistics point of view.
Although forecasts aren’t 100% accurate, using specialised software can increase your planning and production capacity while supporting stock optimisation and supply chain management. Not only that, but these solutions can reduce friction and redundancies from the manufacturing process, assist you in successful product development, and minimise errors.
At Reflex Planning we’re ready for 2022. Our demand forecasting software has been created to help businesses navigate uncertainty and lay the groundwork for a prosperous year. Does this sound like a good plan? Then get in touch to arrange a free product demo.
