Improving forecasting by improving the supply chain

Streamlining a distribution network can lead to bigger savings and increased efficiency, but it can also create better forecasting. Companies may see a lot of additional value in the supply chain by working to improve inventory control.

Implementing new technology to create a warehouse management system that is able to track merchandise as it moves through the supply chain can make a firm more responsive. Trucks can be rerouted or orders modified to account for changes in demand. This same system allows  a company to build accurate profiles of its inventory.

Tracking goods can provide a better assessment of product location and demand, which may improve forecasting results. Sometimes errors in forecasting are the result of placing too many goods in one region. The overall order may be accurate, but most of the goods didn't sell because they were in the wrong area. Centralized warehouse management systems can help companies avoid these situations.

Businesses that implement new tracking software are more likely to extract greater value from their supply chains. Tighter inventory control allows firms to make better calls on purchase levels and merchandise allocation, and can even reduce demand for warehouse space. With a leaner, more accurate inventory, companies will be able to save a substantial amount of time and money.

Related Information

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• Ecommerce Growth Shifting Toward Tablets
• Dealing With Multichannel Returns
• Data Analysis Is Driving Change In Supply Chains