It stands to reason that every manufacturer understands that the ability to forecast demand is one of the key factors for operational success. Accurate sales forecasting ensures that you set the right sales projections and order the right amounts for both production and procurement. If you overestimate, then you will have to face an explanation to the management why shelves are loaded with such inventory no one is selling. And if underestimated, you’re liable to answer customers who aren’t getting what they need in time.
The problem is the conventional enterprise resource planning-based (ERP) methods used are underserving in this competitive context. They, by and large, end up with the ‘Leave the way things were in the past, well that’s how they will surely remain in the future’ strategy as the changing nature of variables keep on evolving.
The importance of demand forecasting
Forecasting starts with ERPs. Executives use ERP for a critical part of their day-to-day task such as response to the market and demand allocation. This professional will gain immediate access to a database that keeps information about previous production and shipment chronology, supply chain figures, financial data, and signed agreements, in addition to details about workforce and machines. To live without them is the worst torture.
“The global Cloud Manufacturing market size is projected to reach USD 86290 million by 2028, from USD 39760 million in 2021, at a CAGR of 11.2%.” – MarketReportsWorld
A regular ERP system utilizes the forecasting data from your demand planning software where the system analyzes e historical trends and seasonal patterns, to manufacture a forecast. However, such prediction can only come as good as the data it has been built on.
Benefits of demand forecasting
- Reduced stockouts: By accurately predicting demand, you can ensure you have enough inventory on hand to fulfill customer orders promptly, avoiding lost sales and frustrated customers.
- Minimized waste: Accurate forecasts help you avoid overstocking on products, which can lead to spoilage, obsolescence, and other forms of waste.
- Optimized inventory levels: Demand forecasting allows you to maintain the right amount of inventory, freeing up capital that can be reinvested in other areas of your business.
- Improved production planning: Knowing future demand allows you to plan production schedules more effectively, ensuring you have the resources available to meet customer needs.
- Enhanced profitability: Reduced stockouts, minimized waste, and optimized inventory levels all contribute to increased profitability.
- Better customer satisfaction: By fulfilling orders promptly and avoiding stockouts, you can improve customer satisfaction and loyalty.
- Data-driven decisions: Demand forecasting provides valuable data that can be used to make informed decisions about product development, marketing strategies, and resource allocation.
The impact on sales agreement
To complete the proposed sales, manufacturers must consider whether they are to be able to fulfill the agreed numbers. Manufacturers suffer financially when they do not come true with their planned commitments. This implies that visibility and transparency should be ensured as a product will be on hand in order for the customers to place their orders.
In addition, inventory problems can occur when customers fail to place the right order or do so after they have missed one or are forgetting their previous orders. Classic options may help to detect delays and redundant orders that consequently allow the company to fix and update the demands to feed the order management process.
How Salesforce Manufacturing Cloud can accelerate your business
Manufacturing industry today is ruthlessly competitive, and taking things to action sooner and smarter is essential to succeed. Salesforce Manufacturing Cloud is a complete set of tools created exclusively to act promptly to the arising challenges. Here’s how it can directly impact your business: Here’s how it can directly impact your business:
Accurate forecasting, less guesswork: Don’t make decision-facing demand forecasts based on whims! Salesforce Manufacturing Cloud brings together all your customer data that is linked together in tandem, giving you an all round vision of buying patterns and previous sales. Another advantage of real-time inventory management is the ability to estimate demand precisely, therefore, you will always have the right amount of inventory to meet customers` expectations and prevent stockouts.
Optimized inventory, reduced waste: Take the risk of losing transactions because of inventory left unsold! This precision industry is usually matched with precise demand projections and inventory being optimally managed. This results in not only the minimization of waste but also free capital that is ready to be invested in areas that really matter.
Improved teamwork, fewer delays: Overcome the functions disbalance and harbor a work-together spirit! Salesforce Manufacturing Cloud is just a single point of truth that information from the different departments (sales, marketing, production) can be seen at the same time and they can be able to easily cooperate. Ponder that salespeople can send to the production planner real-time data from customers that can be used by the later one for adjustment of the production program.
“77% of manufacturers who have moved to the cloud now automate most or all of their forecasting processes.” – Salesforce Inc
Happier customers, more business: Content customers; more sales = visits. The Salesforce product line called Manufacturing Cloud gives you possibilities for building outstanding customer service. Integration with the CRM system enables it to give a more comprehensive view of each particular customer, enabling you to be able to know each consumer and anticipate their needs to which you can answer their queries fast enough.
Data-driven decisions, better results: Try to think rationally, applying facts instead of emotions to your decision-making. Manufacturing Cloud from Salesforce offers extremely helpful features for analytics that let you observe some patterns, understand customer behavior and make the entire process of manufacturing more efficient. Think about how technology enables you to do this and soon you’ll uncover the leaks that are bleeding your products as well as the gold veins of markets that will be excellent for your business.
Leverage Salesforce Manufacturing Cloud for better productivity
One of the greatest contributions of the cloud is that it can link up which are very diverse and make them legible, and what is more profitable for those business entities which use them.
Using cloud-based system as a single data warehouse you can organize and collect data from all disjointed ERPs to make it a single point of truth and put it in the service of your business analysis. The perfect system for this is complex and will present this data in several forms that are easy to understand. Also, by doing so you will be able to include the up-to-date demand information obtained from the previous period sales. At Softweb Solutions, we have certified Salesforce developers, and we deliver Salesforce consulting services to help businesses sail through their needs.
