WMS store order forecast feature: concept and importance

WMS store order forecast feature: concept and importance

I have written many articles on the importance of having a Warehouse Management System (WMS) to manage inventory and logistics. But one of the most valuable features of a WMS, which I have not expanded into, is its ability to forecast store order demand. This feature allows businesses to predict which products will be in high demand and plan their inventory accordingly. In this article, I will about the concept and importance of the store order forecast feature.

What is store order forecast?

Store order forecasting is the process that predicts the orders that a warehouse or distribution center will receive from its retail stores. This forecast is typically based on historical data, such as order volume and sales trends, as well as other factors, such as promotions, seasonality, and customer behavior.

How does a store order forecast work?

Direct store delivery (DSD) companies use a variety of algorithms and techniques to forecast the next order of an item in the store.  In its basic form, the formula will be:

Importance of store order forecasting for retailers

Store order forecast is critical for retailers to manage inventory levels, improve supply chain efficiency, enhance customer satisfaction, and increase profitability. By accurately forecasting the amount of stock, retailers can avoid stock-outs and overstocking, which can result in lost sales and excess inventory costs.

Importance of store order forecasting for distributors

Store order forecasting is crucial for Direct Store Delivery (DSD) companies as it helps them to efficiently manage their delivery operations, optimize their inventory levels, and meet customer demand. Here are some of the key benefits:

• Improved store sales: Store order forecast allow the distributor to optimize the sales in each store, avoid missing seasonal pick demands, and reduce returns or expired products on the shelves. All of these benefits translate into more sales and profits.
• Improved delivery efficiency: Store order forecast enables DSD companies to optimize their delivery schedules, ensure the availability of the products for delivery to each store, reduce delivery times and costs, and improve delivery accuracy.
• Better inventory management: With accurate store order forecasting, distributors can manage their inventory levels and have the right products in the right quantities available for delivery to the stores.
• Enhanced store manager satisfaction: In my recent article about How to beat the competition, we mentioned store manager satisfaction as one of the main elements. By selling the amount of products that the store needs to satisfy the demand, we are helping the store to optimize its operation and hence, keeping the managers happy.

I hope this article has been helpful to you. I will continue to post information related to warehouse management, distribution practices and trends, and the economy in general. If you are interested in this article or want to learn more about Laceup Solutions, please subscribe to stay updated on future articles.

There is a lot of relevant information on our channel. Check out this video on order projection.