Anticipating demand, projecting sales figures and planning especially during peak periods in customer demand is inevitable to maintain smooth and successful business operations and keep customers satisfied. Not doing so may not only risk running into losses but can also affect a business’s reputation and future growth.
Insufficient planning can lead to the following negative consequences:
It’s difficult to anticipate spending needs in the absence of accurate demand forecasts. An unexpected rise or fall in sales of goods could lead to failure in meeting those needs due to lack of budgeting.
Poor forecasting will have a direct impact on costs of inventory due to inadequate or excess inventory levels in the warehouse. High working capital costs is one of the most significant factors that affect the profits of a business negatively.
Inadequate human capital
If a business doesn’t accurately account for peak seasons, there is a possibility that they will be understaffed, be it at the warehouse or retail stores, to meet the demands of their customers.
Loss of reputation
Losing credibility is the single greatest fear for any organization. Inability to meet customer’s expectations will have a far reaching negative impact on operations and it can be difficult and expensive to recover.
Conventional qualitative and quantitative forecasting methods are losing out to intelligent tools that make use of machine learning algorithms that automate, reduce errors and exponentially simplify demand forecasting for businesses.
Manual data entry, order slips, spreadsheets are now a thing of the past. The key players have already incorporated innovative, dedicated software solutions and are reaping huge benefits- accurate projections, efficient stock levels, sufficient budgeting, more time to focus on serving customers, etc.
We, at Purchasing.ai, have combined our experience in automation software, data analytics, ERP tools and dealing with the FMCG retail landscape in building one such order management tool that will not have you spending a chunk of your time manually checking inventory levels and calling up your vendors to place orders. Instead, with all data stored on our platform, you can predict orders, generate purchase orders and directly send it across to your vendors at the drop of a hat.