When spreadsheets just can’t cut it anymore, Demand Planning software can be a serious game changer for emerging retail and e-commerce companies. The solutions available today leverage machine learning trained on actual point-of-sale data, promotions and seasonality as well as external data like online consumer behavior, weather, gas prices, economic indicators and more in order to deliver very accurate and dynamic forecasts all the way down to the product and location level. Here are the top 10 reasons why retailers invest in demand planning software.
Improved forecasting accuracy: Demand planning software can help retailers more accurately forecast demand for their products, which can help them avoid stockouts or overstocking.
Enhanced inventory management: By having a better understanding of demand patterns, retailers can optimize their inventory levels, which can help them reduce carrying costs and improve cash flow.
Increased sales and revenue: By using demand planning software to forecast and plan for demand, retailers can ensure that they have the right products in the right quantities at the right time, which can lead to increased sales and revenue.
Reduced costs: By being able to optimize inventory levels and improve forecasting accuracy, retailers can reduce costs associated with carrying excess inventory or stockouts.
Better supplier management: With a better understanding of demand patterns, retailers can work more effectively with suppliers to ensure that they have the products they need when they need them.
Enhanced customer service: By using demand planning software to forecast and plan for demand, retailers can ensure that they have the products their customers want when they want them, which can improve customer satisfaction and loyalty.
Increased efficiency: By automating the demand planning process, retailers can reduce the time and effort required to plan for demand, which can improve efficiency and productivity.
Improved decision-making: With access to real-time demand data, retailers can make more informed decisions about product offerings, pricing, and promotions.
Better collaboration: With the ability to share demand data and collaborate on demand planning across multiple departments and locations, retailers can improve communication and coordination, which can lead to better decision-making and outcomes.
Real-time monitoring: With demand planning software, retailers can monitor demand in real-time which can help them quickly respond to changes in the market and adapt their strategies accordingly.
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