How a 3PL Can Help Your Business Predict Demand

For many businesses, having the right amount of goods on hand to meet demand is a hit or miss endeavor. Sometimes, a company inventories too much, expecting a high product demand that never materializes, and other times, a company stocks too little inventory and experiences out of stock situations. But predicting demand doesn’t have to be a crapshoot. With a proper warehouse management system (WHS), the ability to forecast becomes much more accurate and reliable.

That’s where a third party logistics (3PL) provider with the most advanced technology can help. As an example, take a look at how Brendamour Warehousing, Distribution & Services can provide your business with the tools necessary to predict demand and ensure inventory is in place to meet it.

Forecasting Seasonality

Forecasting seasonal demands makes it possible for an accurate and efficient inventory of your goods. Brendamour Warehousing is equipped with technologically advanced computer equipment and programs that enable us to provide you 24/7 access to your current inventory levels, as well as historical data.

Knowing when demand for a particular season runs high or low for your goods allows you to set accurate lead times and amounts for raw materials and other production services within your supply chain.

The end result: Less costs associated with replenishing inventory on a rush time frame. Additional benefits include greater revenue and profit margins, and increased customer satisfaction that leads to greater customer retention and more referrals.

Identifying Cyclical Factors

With Brendamour’s warehouse management system, your business is able to easily identify variations and cyclical factors to help predict demand for your goods. This includes various influences, such as the weather or certain events, and historical demand trends.

By managing your inventory data within the WMS, you can determine the key factors impacting customer demand.

The end result: Informed decisions on when inventory should be increased to meet demand. This reduces stockouts, thus increasing your sales and bottom line.

Maintaining the Right Balance

Inventory management is the foundation of any business that sells goods. One way to maintain the right balance of inventory is through good inventory management.

An advanced warehouse management system, such as that utilized by Brendamour Warehousing, handles the entire inventory control process using a mix of systems, processes, and procedures to establish the right balance between how much stock you have on hand and when to order more.

Some of the factors we use to develop an inventory control program for your business that strikes a balance between oversupply and shortages are:

- Inventory Usage Analysis – This inventory control report determines how much inventory is used during a certain time frame.
- Projected Usage – By factoring in seasonal periods and high demand holidays or events, this data allows for accurate projections of future inventory usage.
- Order Cycle Time – This looks at the typical length of time between one order and the next one. By calculating the order lead time, inventory planning can be better managed for timely order fulfillment.

The end result: Your organization realizes efficient inventory management, with less instances of overstocks or supply shortages. This balanced inventory control leads to a more efficient workflow that puts the focus on the company’s core functions. After all, it’s these core functions that make a difference in profitability!

Here’s a Prediction: Better Inventory Management

When your business has the best tools available to predict demand, you’re going to realize greater success. You’ll find the best inventory planning and management tools with Brendamour Warehousing, Distribution & Services.

Contact Brendamour to discuss your company’s products, supply chain, and current inventory challenges. We’ll work with you to establish an inventory planning strategy that will ensure proper levels of inventory to address peaks and valleys in demand.

The end result: An inventory management plan that better positions your business to serve its customers while realizing a more profitable bottom line!