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Forecasting & inventory improvements
Improved forecast accuracy and effective inventory management are essential for any business looking to scale. As part of a detailed service, we’ll help you to improve forecast processes and techniques to optimise inventory, service, and capacity.
By generating improved demand forecasts, we’ll help you to maintain optimal inventory levels, preventing both overstock and stockouts. This helps in unlocking working capital tied up in excess inventory, allowing you to reinvest in growth opportunities. Cost savings are realised through reduced storage expenses and minimised waste.
Effective inventory management ensures that products are available when customers need them, enhancing their experience and satisfaction. Improved customer satisfaction leads to increased loyalty and repeat business, further supporting your company’s growth and profitability.
Forecasting & inventory: How can we help you?
By bringing Hatmill on board and utilising our forecasting and inventory services, we’ll help your business to:
- Improve service to customers
- Reduce inventory and improve working capital
- Optimise labour management
- Reduce waste, discontinuations and obsolescence
- Better predict capacity requirements
- Put a structure in place to review demand and supply
Process & considerations
The Hatmill approach to demand forecasting & inventory
After working with you to understand your current system and the thresholds currently deployed, we’ll work with you to help your business maintain optimal inventory levels, unlock working capital, and improve customer satisfaction. Here’s how we’ll improve your forecasting and inventory management:
Data collection
No matter which forecasting or inventory service you choose, we’ll begin by gathering historical sales data, market trends, and seasonal patterns to create a robust dataset. Accurate data collection forms the foundation of reliable demand forecasts.
Demand analysis
We’ll then analyse the collected data using statistical tools and advanced analytics to identify patterns and trends. This helps in understanding past demand behaviour and predicting future needs.
Forecast generation
We’ll then develop detailed demand forecasts based on our analysis. These forecasts guide inventory planning by predicting future sales volumes and trends. Depending on current capabilities, we’ll optimise your current system or offer insight into future volumes.
Inventory planning
These demand forecasts will then be used to plan inventory levels. Appropriate reorder points and safety stock levels will be set to ensure product availability while minimising excess inventory.
Implementation & monitoring
We’ll then implement the inventory plan and continuously monitor inventory levels and performance. Strategies will be adjusted as needed to respond to changes in demand and supply chain conditions.
Performance review
We’ll regularly review the forecasting and inventory management process. We’ll also analyse key performance indicators (KPIs) to identify areas for improvement and ensure your system adapts to evolving business needs.
“Hatmill was able to quickly assess our operations and provide real actionable feedback on ways to improve our processes.”
– Commercial Director – Logistics, American multinational manufacturer
Better demand forecasting, better business
We’ll help you to generate more accurate forecasts that align inventory to demand, or optimise your system to do this, so you can provide a better service to customers while unlocking working capital and injecting cash back into the business. Reliable forecasts will also inform capacity and resourcing requirements in your warehousing operations, creating efficiencies and savings.
Proven experience and methodology
Our team of inventory and forecasting consultants all have direct industry experience across a range of sectors including industrial manufacturing and retail distribution.
We’ve developed a proven methodology to generate reliable and unbiased demand forecasts to inform replenishment activity and drive inventory levels. We’ll provide you with a valuable insight into KPI’s, a review process to assess how aligned the customer proposition is to the inventory profile, and techniques to improve product lifecycle performance.
FAQs
What should you know?
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How does accurate forecasting impact the supply chain?
Improved forecasting positively impacts the supply chain by ensuring optimal inventory levels, reducing stockouts and overstock situations. It enhances efficiency by aligning production and distribution with actual demand, leading to cost savings and improved resource allocation.
Additionally, improved forecasts enable better planning and coordination with suppliers, improving lead times and overall responsiveness to market changes. This results in higher customer satisfaction due to timely product availability and reliable delivery schedules. Overall, it supports a more agile, efficient, and cost-effective supply chain.
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Why is accurate inventory management important?
Inventory management is crucial as it ensures the right products are available at the right time, preventing stockouts and overstock situations. It optimises storage space, reduces holding costs, and minimises waste from expired or obsolete items.
Additionally, precise inventory data improves shipments per order, increases order fulfilment accuracy, enhances customer satisfaction, and supports better decision-making for purchasing and production planning. Effective inventory management also aids in maintaining a healthy cash flow by tying up less capital in excess stock, ultimately contributing to overall operational efficiency and profitability.
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