Forecasting plays a huge role in many businesses. If a business consistently sells more than predicted, for example, forecasting software will automatically adapt future demand predictions to account for this. Without forecasting, businesses could miss out on valuable sales opportunities, plus they wouldn’t have full visibility of what’s happening in their business.
Historically, forecasting has not been an exact science, but modern technology which uses highly sophisticated algorithms is able to cohesively use a range of techniques and data analysis to generate detailed, accurate and justifiable forecasting reports. Forecasting plays an important role in statistical forecasting, managing promotions, alerts and managing staff rotas.
There are several different types of forecasting:
1. Market Trend Predictions
Businesses need to take the fluctuations of markets into account and the only way they can do this is by attempting to forecast what is likely to happen in the marketplace. Looking at the bigger picture in this way with the help of trend forecasting tools lets you gain an understanding of consumer trends which will enable you to make informed sales predictions.
2. Sales
Sales forecasting is generally used to predict sales figures in the near future (6-12 months being the norm). Knowledge of the effects of seasonal events and past performance are used inter alia to generate reports to indicate whether extra stock or staff is necessary.
3. Financial
When you can accurately predict the financial performance of your company in the short to mid-term, you will be able to achieve high levels of transparency regarding its performance. This opens up greater opportunities for expansion and investment, and makes it easier to access credit when you need it. You will be able to make informed decisions and manage shareholder’s expectations, both of which are essential for your business to thrive.
Reflex Demand Forecasting Software
Reflex offers Demand Forecasting, a solution that effectively allows you to take control of your future. If a weak forecast is generated, for example, alerts notify key personnel to address the situation. Managing financial processes, comparing financial and volume forecasts and incentivising sales teams are all possible with this highly integrated solution. Contact Reflex today to find out more!
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