Keeping your production running efficiently can be a challenge, especially when it comes to making your clients happy. Using forecasting to manage your manufacturing can keep your lines working smoothly and inventory levels accurate. Here are a few reasons why you should use this method.
Better Client Relations
Utilizing Demand Forecasting will give your customers an accurate estimate of when their products will arrive. When they consistently receive what they order on-time with the correct quantity, they will be pleased with the service your company provides. They will be more likely to order additional things from you and recommend your business to their colleagues. Well maintained forecasting can keep lead times short which will also make your clients happy to work with you. There are software programs available that can compile the order and product information for each of your customers and dictate which items should be manufactured when and at what quantity.
Keep Product Fresh
Use forecasting to determine how long it takes for your customer to process through your order and ask for another shipment. Analyze the past few months of information concerning their invoices and the items that they order for use. Input the data into your system to see what it recommends for the next order date. Once you get the system refined, you can recommend it to your customer. This keeps the product that you ship to them fresh. You can also increase and decrease production in accordance to your client’s peak and slow seasons.
Inventory Stock Levels
Forecasting allows you to manage the inventory level on your shelves and your customer’s. It prevents you from running short or out, leaving your customer with little to work with. It also keeps them from being overstocked with excess items to use. When your customer is out, it drops their satisfaction level with your business and leads them to consider looking for another company to work with. Keeping an accurate system and watching over it will strengthen the relationship between you and your clients.
Manage Your Own Supplies
You can manage your own inventory by utilizing forecasting. When your data anticipates a peak in your customer’s inventory needs, it will alert you to order additional raw materials and packaging items to stay up with the demands. Coordinating their forecasting with your purchasing programs will keep you well supplied to make their products and ship them out while preventing you from sitting on additional materials that might extend past their shelf life.