Whether you run an online store or operate a physical retail store, inventory forecasting helps you:
- Fulfill customer orders right away for a better customer experience
- Optimize inventory investments — storage space, staff, and budget — in an optimal way
- Always be prepared for an increase in product demand
- Achieve financial goals in a hassle-free and predictable way
If you overstock products, your cash flow will be tied up in unsold items while you have to pay for other inventory costs. Similarly, if you’re unable to maintain sufficient inventory levels, you may lose potential sales.
The solution here is to find the right balance between cash flow management and optimizing inventory levels. That is where inventory forecasting does the job.
In this post, we’ll explain what inventory forecasting is and why it’s essential to help you make better decisions at purchasing.