2. Forecast Your Inventory Needs
Forecasting your inventory needs is the key to finding the balance between inventory and demand. First, determine the true factors that drive the demand for your products. Compare past years’ sales with the current year’s sales to determine when and how sales increased or decreased over time. Also, record the details of all promotional periods. Special pricing affects sales. Keep track of the date, duration, price, SKUs, etc., to aid your inventory forecasts. Additionally, recognize the symbiotic relationship you have with your vendors, and share your inventory forecasts. This helps them forecast their own needs which better prepares them to supply your needs. It has its advantages: lowers the supplier’s finished-product inventory, their overall costs, their demand variability, and potentially your price. The farther ahead you can forecast your inventory needs, the greater the chance that you will receive your stock at the best price and in the shortest amount of time.
2. Forecast Your Inventory NeedsForecasting your inventory needs is the key to finding the balance between inventory and demand. First, determine the true factors that drive the demand for your products. Compare past years’ sales with the current year’s sales to determine when and how sales increased or decreased over time. Also, record the details of all promotional periods. Special pricing affects sales. Keep track of the date, duration, price, SKUs, etc., to aid your inventory forecasts. Additionally, recognize the symbiotic relationship you have with your vendors, and share your inventory forecasts. This helps them forecast their own needs which better prepares them to supply your needs. It has its advantages: lowers the supplier’s finished-product inventory, their overall costs, their demand variability, and potentially your price. The farther ahead you can forecast your inventory needs, the greater the chance that you will receive your stock at the best price and in the shortest amount of time.
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