Comprehensive approach to forecasting product needs for one to three cycles of sales.

As sales volumes increase and higher sales per square foot are needed to meet sales budgets, it is increasingly important that retailer and supplier work closely to develop forecasts that will ensure an appropriate inventory product mix and depth is in place at all times. While many retailers and suppliers work closely to develop product forecasts, it is still common to find suppliers that do not receive significant guidance on the quantity of product to produce to meet their retail customer’s sales opportunities and budgeted needs. This fact can result in shortfalls or overages in needed inventory especially in the short selling windows of seasonal categories. In either case, the opportunity to proactively steer the market to meet consumer needs and buying trends has been missed.

We have developed tools to facilitate the forecasting of product needs up to a three year period. This timeframe allows suppliers to plan and produce products with even the longest time to market periods. This in turn allows retailer and supplier to bring to market unique products or inventory depth that is not possible without this proactive approach.

Forecasts are created by applying appropriate historical performance metrics, supplier and retailer participant input, and analysis of consumer buying trends. Average selling price and margin requirements can also be factored in as necessary. The result is a new level of control in managing the performance of the affected categories. And your customers will experience a better shopping experience as they come to trust your stores to have their favorite items in stock at all times.