As the demand for your products is typically dictated by a partner’s expectations, how do you balance their estimates and your inventory level, and safeguard against fluctuations? One of these expectations could be wanting to ensure product availability from you as the supplier.
To stabilize the production line, and minimize under-or overproduction, you would need an independent and highly accurate forecast for the actual future sales volumes.
Through a model that predicts future sales based on leading indicators, it is possible to obtain an accurate forecast. One that will reflect actual customer demand, giving you an unbiased forecast that is independent of the vested interests of your partner.
We probably can’t do away altogether with end-customer demand variations, especially when these changes happen during the span of two weeks.
However, by planning ahead, you can buffer the impact of these potential shifts in a cost-effective way, and manage the impact of inconsistencies.
Improving the accuracy of your demand forecasting will reduce the level of stock needed, culminating in cost savings.
The information sent by your customers can prove to be insufficient in supporting your long-term strategy planning.
How can you plan for the long term investments, such as ensuring you do not get left out as OEMs move towards integrating production vertically? How to leverage the emerging electrification of the automotive industry?
In Indicio, you can easily generate accurate long-term forecasts that incorporate the effect of emerging trends and macroeconomic leading indicators.
Minimize forecast error margin, and extend coverage of more markets for both demand and production.
Using Indicio, there is now a continuous forecasting minimized error margin, they've identified new and stronger market leading indicators, improving forecast accuracy, and have established a structured forecasting process for all markets.
Using Indicio, organizations can easily detect the leading indicators driving sales/market development and apply econometric forecast models on the indicators identified. Built for both decision makers and analysts to easily generate forecasts in order to optimize capacity planning.
Whether your goal is to increase market share or safeguard against volatility,
the road to making decisions confidently lies in generating accurate forecasts you can trust.
Learn how to grow and establish your market position
in these uncertain times.