The ease of using internet and web based application has led a lot of confusion around order fulfillment and logistics. Proper planning and forecasting by preparing and structuring data is the solution for such turmoil. The structured data is used by databases for business processes and is called data modeling.
We gather raw and unorganized data from various sources and then organize and process that data to produce forecasting. This structured and organized data is also used to estimate the Economic Order Quantity (EOQ) model, as shown below.
Forecasting is used to estimate the value of key variables at some future point in time. We maintain and archive all customer data, and this historical data is used for both forecasting and inventory management. Whether a customer's orders are seasonal or non-seasonal or whether they exhibit any trends; our forecasting methodology covers all these scenarios and projects future activity for that customer's order fulfillment.
We provide our customers with low inventory and inventory stock-out alerts. We also provide an ongoing inventory estimate to provide a safety average demand during long leadtimes.
There are two major catagories within forecasting:
1. Qualitative methods:
- Market Research
- Product life-cycle analogy
- Expert judgement
2. Quantitative methods:
- Regression method
- Multiple equation method
- Time series method
Each of these methodologies can be useful in different industries. Some industries and companies can get a more accurate forecast result with qualitative methods while others use extensive quantitative and statistical methods.
If you are interested in learning more about our inventory management, planning and forecasting process, please contact us.