News

Order forecasting and ROI

2/11/2015
A restaurant that prides itself on selling fresh food often finds itself struggling to manage reasonable waste. These two goals seem opposed, especially in a busy retail environment.
When a business is committed to selling only the freshest items every day, determining how much inventory you need each day of the week is mandatory. Your staff must always have the proper amount of inventory items on hand to make sure the customer is taken care of properly.
Thus, managers need to get down to the shift level when forecasting orders. But many older solutions geared toward this purpose struggle to get down to granular  patterns.
Here are three ways in which investing in a Software-as-a-Service (SaaS) solution that allows for pinpoint accurate order forecasting can generate ROI.
1. Reduced waste
Finding a reliable solution with which you can forecast orders for every hour of every day take the guesswork and subjectivity out of the equation. A tool that incorporates historical usage data gleaned from recorded waste for every product a store carries gives managers a clear picture of exactly what the minimally sufficient inventory for a specific product should be going forward.
In addition, an automated order forecasting platform will allow you to look not only at historical data, but other variables like sales promotions, community happenings and other events that historical records cannot account for. Taken together, these variables can lead to a complicated forecasting environment in which it is too difficult to accurately assess how orders will change, making waste management difficult. Automating this process lessens waste by removing the complexity and guessing out of the situation.


Accurate order forecasting saves time, reduces waste and ensures all customers leave happy.Accurate order forecasting saves time, reduces waste and ensures all customers leave happy.
2. Time saved
Business owners often rely on outdated tools that complicate the process of managing inventory. This makes order forecasting a time-consuming and subjective process, which may lead busy managers to look for shortcuts that result in inaccurate orders and more waste.
"A SaaS order forecasting tool gives users a real-time view of the entire supply network."
Having a streamlined SaaS solution saves time by automating the order forecasting process while remaining flexible and customizable enough to accommodate any changes to the business, like a new product line. Additionally, an SaaS order forecasting tool gives users a real-time view of the entire supply network, meaning that they won't have to spend time digging through weeks' or months' worth of historical records to locate trends.
3. Happier customers
Nothing is more deflating for a customer than getting to the front of the line to place an order and hearing the item they want is sold out. A forecasting engine that can incorporate the product mix into the equation can help business owners determine which items will not sell well at a particular time and which items are the hot sellers that should be given more shelf space.
This will help ensure that the products customers are looking for are always available and reduce waste at the same time by helping business owners order the minimally sufficient amount of every item they offer. In a world of empowered consumers, making sure they get what they want, when they want it, is critical for turning a one-time buyer into a lifelong fan.