Demand forecasting is the process of predicting future customer demand so that businesses can plan inventory, staffing, and logistics effectively.
What is demand forecasting?
Warehouses and distribution centers store inventory that flows to retailers, ecommerce customers, or directly to consumers.
Demand forecasting is a critical factor in their supply management, ensuring businesses have the right amount of inventory, products, and services available to meet future customer demand.
For warehouses and distribution centers, this process of activity planning helps businesses ensure the right products are available in the right quantities at the right time. Without it, these facilities are at risk of becoming overstocked with slow-moving goods or understocked on high-moving items.
Both of these consequences severely disrupt operations and can lead to diminished customer satisfaction.
Why is demand forecasting important for the supply chain?
- Inventory management
- Resource and space allocation
- Production planning
- Customer satisfaction
- Strategic planning
How do warehouses use automation to amplify demand forecasting activities?
Automation helps turn data into actionable insights.
Software systems can analyze historical sales patterns, seasonal trends, market fluctuations, and economic shifts. The data gleaned from analysis enables warehouses to dynamically adjust replenishment schedules, stock levels, and labor planning.
In addition to software, automated equipment can improve efficiencies inside the warehouse. Automated storage and retrieval systems (ASRS), robotics, and conveyors can adapt to shifts in demand forecasting by reorganizing workflows, prioritizing fast-moving goods, and helping businesses scale in peak seasons.
Together, warehouses and distribution centers can shift from being reactive to proactive, using demand forecasting to gain a competitive edge.
Numina Groups helps customers with demand forecasting
Numina Group’s warehouse execution and control software, Real Time Distribution Software (RDS™), complements our customers’ demand forecasting and planning activities.
We partner closely with our clients to define, design, and implement warehouse automation solutions built around the right processes and warehouse technologies to increase efficiency and productivity in distribution center operations.
Numina’s RDS™ automates consumer goods supply chain functions to respond to changes in demand.
Learn more:
Website: Smarter Warehouse Execution Starts with RDS™
Website: Consumer Goods Logistics
Video: Data Driven and Software-Centric Warehouse Automation Design