Why Supportive Tools and Software are Important for Inventory Forecasting ? Make Your Inventory Count - Digitally!

Abstract

Running inventory for an ecommerce business can sometimes feel like riding a roller coaster. Without the proper demand planning tools in place, all of those ups and down can be hard to predict. Not to mention that gut-wrenching stomach drop when something goes wrong and you’re unable to meet customer demand.

Keywords: 

Inventory Forecasting Software, Selection of inventory tools, Forecasting processtes

Learning Outcomes 

After undergoing this article you will be able to understand the following 

1. What inventory forecasting tools do?

2. Why accurate inventory forecasting is essential?

3.  What's various types of inventory management software good 

4. What features to look for in demand planning software solutions?

5. How to choose and implement the right inventory forecasting software

6. Top 5 software picks for inventory forecasting

7. Common inventory planning, demand, and forecasting 

8. Conclusions 

9. FAQs

References 

1. What inventory forecasting tools do?

Inventory forecasting software is a tool that utilizes historical data, trends, and algorithms to predict future inventory needs, enabling businesses to optimize supply chain management and make informed decisions about inventory levels.

Inventory forecasting software helps you streamline operations and achieve optimum efficiency across your entire supply chain. When implemented properly, it provides several operational advantages.

Demand forecasting tools use historical data, market trends, seasonality, and other factors to predict future customer demand for your products. They can also incorporate external data sources, such as weather, social media, or competitor activity, to improve the accuracy of your forecasts. 

2. Why accurate inventory forecasting is essential?

Inventory forecasting software is a tool that utilizes historical data, trends, and algorithms to predict future inventory needs, enabling businesses to optimize supply chain management and make informed decisions about inventory levels.

Inventory forecasting software helps you streamline operations and achieve optimum efficiency across your entire supply chain. When implemented properly, it provides several operational advantages…

Inventory forecasting software taps into the magic of data analysis to predict sales and demand with impressive accuracy. Advanced machine learning algorithms crunch the numbers and examine historical patterns, effortlessly identifying current market fluctuations, pinpointing seasonal trends, and even predicting unexpected spikes in demand.

3.  What's various types of inventory management software good in performing?

The various good software are

Zoho Inventory

Barcode scanning

Inventory control

Fishbowl Inventory

JIT inventory

Oracle NetSuite

Purchasing management

Cin7

Demand forecasting

Inflow

Katana

Ordoro

Analytics

4. What features to look for in demand planning software solutions?

What to investigate before Considering Inventory Forecasting Software

Consider key features like:

• Integrations with existing systems
• Data-driven forecasting
• Purchase order automation
• Real-time reporting capabilities
• Price
• Services
• Availability 

To choose the right inventory forecasting software, look for key features that ensure smooth integration and accurate insights for inventory management.

Integrations

Integrations with e-commerce platforms, inventory management systems, and accounting tools are essential for accurate demand planning and seamless inventory management. 

Data-Driven Forecasting

Data-driven forecasting is a powerful approach to making informed decisions based on historical sales data and market trends. 

Purchase Order Automation

Purchase order automation offers several benefits for businesses:

• Streamlines the purchasing process, saving time and increasing accuracy
• Reduces the likelihood of errors
• Minimizes costs
• Ensures that the right products are ordered at the right time

By automating the creation and submission of purchase orders, businesses can take advantage of these benefits.

Real-Time Reports

Real-time reports provide up-to-date insights into inventory levels, sales performance, and demand forecasting, enabling businesses to make informed decisions about their supply chain operations. 

5. How to choose and implement the right inventory forecasting software

How to Implement Inventory Forecasting Software

To implement inventory forecasting software effectively, you need to take several critical steps. These include preparing relevant data, training employees, and continuously improving the software. By properly integrating the software into your business processes, you can maximize the benefits of this powerful tool.

Data Preparation

Accurate inventory forecasting hinges on proper data preparation. This includes uploading historical sales data and organizing inventory data in a way that allows the software to generate accurate forecasting estimates. 

Employee Training

For your staff members to become familiar with the software and manage inventory effectively, employee training is indispensable. 

6. Top 5 software picks for inventory forecasting

Some top level inventory forecasting software

EazyStock 

EazyStock is an inventory forecasting software that offers the following benefits:Automates inventory calculations for small businesses and midsize brands

Leverages advanced algorithms and statistical models to optimize inventory management processes

Helps businesses make more informed decisions

Unique features of EazyStock include group EOQ calculation and automated inventory calculations. However, the platform may not be suitable for larger organizations with more intricate inventory forecasting requirements.

Lokad

Lokad is a robust inventory forecasting software that harnesses the power of advanced analytics and complex data processing capabilities.

It offers real-time inventory tracking and advanced demand forecasting, and it seamlessly integrates with many existing systems, providing a smooth transition for businesses.

With the help of Lokad's advanced algorithms and real-time data analysis capabilities, businesses can accurately predict future demand and optimize their inventory levels, making it a key player in the realm of inventory forecasting.

Netstock

Netstock is a web-based inventory forecasting solution built for ERP systems. This tool offers real-time data, automated alerts, and product classification for accurate demand forecasting, making it an excellent choice for businesses looking to optimize their inventory control processes.

Some of Netstock’s standout features include invoicing, inventory tracking, and order management capabilities. Its drawbacks include a lack of advanced forecasting features and limited third-party integrations.

Relex

Relex is a comprehensive inventory forecasting solution that helps businesses optimize their supply chain operations. Key features of Relex include advanced demand forecasting, real-time inventory tracking, and seamless integration with existing systems.

With Relex, businesses can leverage advanced algorithms and real-time data to accurately predict future demand and optimize their inventory levels.

7. Common supporting tools for inventory planning, demand, and forecasting 

Supportive tools for inventory forecasting include basic spreadsheets and inventory management software systems. 

Basic spreadsheets are not dynamic and lack many of the tools that can help you with more accurate forecasting and other functionalities, such as setting automatic re-order points.

Here some tools to calculate demand.

• Spreadsheets: In businesses that have only a few products, basic spreadsheets can work. Use them to load in formulas and assumptions and perform basic calculations.
• Graphs: Simple graphs with time-series data can show future projections in a format that visually oriented people will appreciate.
• 3PL: Third-party logistics companies, also known as 3PL, often have statistical modeling experts on staff to meet the needs of growing businesses.
• Models: The point of forecasting is to build a model that is best for your business. In this way, you can load changes to the data and new scenarios into the model to see how stock quantities should change.
• Inventory management software: When considering which inventory management system is right for your company, look for platforms that offer embedded forecasting tools. The most advanced systems connect with other areas of your company in one integrated fashion with enterprise resource planning (ERP) so your inventory is managed from the same digital portal as your supply chain, customer relationship management, accounting and more.

8. Conclusions 

Inventory Management Techniques are

• Cycle Counting. This strategy divides up inventory by product category, manufacturer, and so on, in order to identify high-risk and high-value stock. ...
• Pull. ...
• Push. ...
• First In, First Out (FIFO) ...
• Last In, First Out (LIFO) ...
• Just-in-Time (JIT) ...
• Consignment Distribution.

Looking to 2024 and beyond, we will no doubt see inventory management software evolve further. AI and machine-learning software have undergone some exciting developments in recent years, and these will continue to be refined and become more accessible.

9. FAQs

References