In NetSuite, forecasting is a feature that allows businesses to predict future demand for products, helping to manage inventory, procurement, and production more effectively.
Demand Planning:
- Forecasting is a core part of Demand Planning in NetSuite. Demand plans are based on historical sales data, seasonal trends, promotions, and other factors that influence future demand.
- NetSuite’s Demand Planning feature provides tools to create and manage forecasts for items over specific time periods (e.g., weekly, monthly).
How to Set Up a Forecast in NetSuite:
- Enable Demand Planning: Go to Setup > Company > Enable Features and ensure that Demand Planning is enabled.
- Create a Forecast:
- Go to Transactions > Inventory > Demand Planning > Forecast.
- Select the item, forecast period, and type of forecast.
- Generate the Forecast: NetSuite will generate a forecast based on historical sales data.
- Adjust Forecasts: Modify the forecast as necessary to account for promotions, seasonality, or market changes.
Types of Forecasts:
- Basic Forecast: Uses historical sales data to predict future demand. NetSuite generates a simple forecast based on past trends.
- Advanced Forecast: More sophisticated, using statistical algorithms and considering various factors like seasonality and market conditions to create a more accurate demand forecast.
- Forecast Scenarios: Businesses can create multiple forecast scenarios (e.g., best case, worst case) to prepare for different market conditions or demand fluctuations.