Demand forecasting in NetSuite helps businesses predict future customer demand for products and services. It uses historical sales data, market trends, and AI-driven analytics to optimize inventory levels, reduce stockouts, and improve purchasing decisions.
Process of Demand Forecasting in NetSuite
- Data Collection – Gather historical sales data, customer trends, and seasonal demand patterns.
- Demand Plan Creation – Use NetSuite’s Calculate Demand Plan feature to generate forecasts.
- Supply Planning – Align demand forecasts with inventory replenishment strategies.
- Scenario Analysis – Run “what-if” scenarios to adjust forecasts based on market changes.
- Purchase Order Generation – Automatically create purchase orders based on demand predictions.
- Continuous Monitoring – Track actual sales vs. forecasted demand and refine future predictions.
Example: Demand Forecasting for a Retail Business
Imagine a fashion retailer preparing for the upcoming holiday season. Here’s how they use NetSuite:
- Historical Data Review – Analyze past holiday sales trends for winter clothing.
- Demand Plan Setup – NetSuite forecasts demand for jackets, sweaters, and accessories.
- Inventory Optimization – The retailer adjusts stock levels to meet expected demand.
- Supplier Coordination – Automated purchase orders ensure timely restocking.
- Real-Time Adjustments – If demand shifts, NetSuite updates forecasts dynamically.