Demand Forecasting Software is extremely important because the more accurately you forecast your sales, the less buffer stock will be required, increasing your inventory profitability significantly. Thrive’s forecasting software is comprehensive demand forecasting software that will accurately forecast demand for your business. It utilizes proven science to generate automated ‘best fit’ forecasts for each of your items. If your business needs a better way to forecast demand, these capabilities of Thrive’s software will help you tremendously:
Demand Forecasting SOFTWARE Identifies Seasonal Profiles Automatically
Unlike other software, Thrive Demand Forecasting automatically detects seasonal patterns where they exist and projects them in the forecast using proprietary state space science. This increases forecast accuracy and reduces required safety stock. With other demand forecasting software, you have to manually review all your items every year to identify which ones are seasonal and which ones are not. This labor intensive process typically does not get done, resulting in inaccurate forecasts for seasonal items.
Best Fit Forecast recast weekly for all items
Every week, the software analyzes the latest demand, applies several different forecasting models and applies the best fitting forecast to each item at each location. Most other software is engineered to only ‘revise’ or ‘smooth’ forecasts each week because they are inefficient, or were programmed many years ago when computing power is not what it is today. The problem with this is that the forecasts become inaccurate over time as demand inevitably changes for many items. Thus overstock and stockouts start to creep back in, and inventory performance suffers until the forecast is recast again.
Thrive’s Demand Forecasting Software is designed to leverage today’s computing power, efficiently crunching the math required to calculate fresh forecasts for all items weekly, utilizing up to 3 years of demand history and considering recent trends, events (such as promotions), lost sales, seasonal patterns, etc.
Users are alerted to changes in patterns of any item’s demand forecast that would impact buying decisions (eg. Brand new items with rapid sell through). This ensures the most accurate demand forecasts possible at all times.
Demand Forecasting Software Calculates Sales Volatility to Optimize Safety Stock Needs
In the real world, many items have lumpy and/or irregular demand or have one time big orders that were much bigger than average monthly demand. For volatile items like this, Thrive calculates the sales volatility (or risk) so that it holds more safety stock for those items. Conversely, it can hold less safety stock for items that have very regular demand year on year.