Sales Forecasting and Inventory Management for Independent Retailers

Revenue Forecasting Tools

Currently, the problem of sales forecasting and inventory management is no doubt adverse in the market. What businesses are lounging for is useful revenue forecasting software and the different sales forecasting tools to sort their Inventory out. Generally, there are two problems associated with inventory management issues that come up due to the unrelated out-of-stocks, and that is:

 

 - Unexpectedly high sales 

 - Overstocks happening due to low sales 

 

 Hence, it is essential to focus on some basic math: Beginning Inventory + Merchandise Receipts – Forecasted Sales = Ending Inventory.

 

 This means that as and when the independent retailer focuses on exactly how much to buy, the retailer immediately starts looking at how much has been brought in the past. Hence this is the reason why the retail math needs to work, and it comes something like this - 

 

 Ending Inventory + Forecasted Sales – Beginning Inventory = Merchandise Receipts

 

 If the businesses do end up knowing how much Inventory would be needed by the end of the month and how much sales would be done by the month-end and then the same gets subtracted with the Inventory started with month start. There could be a real accurate calculation made. 

 

 For a good sales forecast, the following points are essential: sales forecast does take into account the inventory histories and the sales to identify the sales and inventories or encounter any unusual patterns. 

Sales forecasting also drills deep down into the department, the categories, the subcategories, appropriately to identify all the opportunities and trends that come in the way.

Location: Santa Clara, CA 95050, USA

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