Distribution Software And Accurate Sales Forecasting

According to the USA Manufacturers blog, the biggest mistake most manufacturers make is not realizing the importance of demand or sales forecasts. Many use inaccurate techniques and therefore their demand forecasts are wrong. These demand forecasts result in the production of wrong amounts and manufacturers are left with no other option than to bear extra storage cost of inventory in case of over production and losing sales in case of underproduction.

Three of the main causes of inventory forecasting inaccuracies are: unknown vendor lead time, poor communication with customers, and changing inventory needs. While distributors aren’t able to predict usage for completely accurate forecasts; safety stock and flexible supply chains will be a required factor — they can help provide a buffer. However, sophisticated distribution software in the way of an ERP system can provide more accurate forecasts and serve as the missing link in the communication chain among the customer, distributor and supplier.

Additional information on this topic can also be found on the Advanced Distribution Today blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

2013 Distribution Software

2013 Manufacturing Software

You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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