6 Top Benefits of Accurate Demand and Inventory Forecasting for Distributors

6 Top Benefits of Accurate Demand and Inventory Forecasting for Distributors

Today CFOs have to make some crucial Supply chain decisions in this uncertain market.  In this age the success of a company depends on accurate forecasting of the needs of their customers.

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Return on capital

It is important to forecast inventory by an accurate demand prediction and that helps generate return on capital.  High inventory is a drain on capital for multinational companies.  Especially in Europe it is seen that regional preferences and language requirements make it challenging to forecast and hence results in increase inventory holdings and low returns on capital.

Cash flow

Accurate forecasts are important to keep capital and cash free that is otherwise tied up in excess inventory.

Revenues

It has become important to sense customer demands to provide visibility and to market acceptance.  It helps companies to support revenue by adjusting production and distribution strategies and avoiding unproductive accumulation of inventory.

Earnings

It is seen that good business sense is in adapting to supply chain optimization strategies.  Accurate demand helps good supply chain decisions. Costly write offs are created If inventory becomes obsolete and that can result in significant disposal costs.

A modern solution for modern times

Organizations are changing their demand prediction strategies. A new demand tool exists that addresses the forecasts errors.  Modern forecasting is based on current data and not on historical data.

Current data helps with information that can be used to understand of what is happening in the current market.

Financial advantage of accuracy

Manufacturers are making better business decisions based on accurate predictions with the help of automated analysis of real-time supply chain data.

For more information about our supply chain solutions please visit our Distribution page. If you’re not sure if your current supply chain solution is up to the task,complete our evaluation guide.

By Indu Syal, Client Advocate, Premier Computing. Microsoft Dynamics GP & CRM partner based in Salt Lake City UT, and serving Arizona, Colorado, Oregon, Idaho, Nevada, Washington, Wyoming and Utah.

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