Food production businesses need a good forecasting solution, especially those that deal with large amounts of stock constantly coming in and out of the business – which can be hard to manage without an efficient system in place. Moreover, forecasting can give your business a competitive advantage when it comes to planning and production.
Let’s look at four reasons forecasting matters:
1) Reduce Overstocking Or Shortages
A forecasting solution such as Reflex Demand Forecasting uses complex algorithms to allow manufacturing companies to accurately estimate how much stock is likely to be required by consumers over a given period of time. This allows companies to operate with reduced warehouse storage space and also minimises losses by reducing the time any unused stock is left in a warehouse.
2) Better Production Scheduling
Rather than just looking at historic performance, forecasting allows companies to look ahead and glimpse the future and make informed decisions based on all aspects of past and present performance. Forecasting allows companies to meet consumer demand, taking market forces into account and the availability of component parts and raw materials. Forecasting is the best way of giving companies a boost to these parts of planning and production cycles. It will enable your company to operate with greater flexibility, transparency and adaptability in a rapidly changing production setting.
3) Reduced Costs
As well as saving money on storage and wastage, an inventory management solution can also save costs in other related areas, such as job allocation, sourcing raw materials from suppliers, and even administrative or CRM responsibilities. As forecasting affects each stage of the production cycle from beginning to end, more streamlined and cost-effective demand planning inevitably leads to a more streamlined and cost-effective company.
4) Increased Customer Satisfaction
Your customers need to know that your product will be available pretty much on demand. It stands to reason, therefore, that the improved processes that result from implementing a planning solution will inevitably increase levels of customer satisfaction and enhance the reputation of your business.
How Does Forecasting Work?
Reflex forecasting software uses order history directly taken from your core ERP system. This enables Reflex to calculate your forecast by various periods, such as day, week or month, using “auto-adaptive calculations based on algorithms developed with Manchester Metropolitan University. Reflex uses these algorithms to create accurate forecasts for seasonal sales by dynamically analysing trends, demands or sales history.
Reflex’s range of software solutions are of particular value to businesses within fresh food production where timescales are often extremely tight and it is essential for businesses to know when to order new stock. Contact us today to find out more about the unique features of our forecasting platform and how it can benefit your business.
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