With Black Friday, Christmas, and other peak shopping periods right around the corner, the pressure is on.
Retailers, manufacturers, and logistics teams are scrambling to make sure they have the right products in the right places at the right times. But for many companies, this period often turns into an inventory nightmare due to poor demand forecasting.
What’s the Big Deal with Inventory Forecasting?
Inventory forecasting is the art and science of predicting demand and planning inventory levels accordingly.
Done right, it keeps your shelves stocked without overloading your warehouses.
Done wrong, it can lead to costly overstocking, stockouts, unhappy customers, and, ultimately, a damaged brand reputation.
Accurate forecasting means predicting demand based on historical sales data, seasonal trends, upcoming events, and other factors. But with so many variables in play – fluctuating demand, supplier delays, changes in consumer behaviour – even experienced teams struggle to get it right.
Real-World Examples of Forecasting Gone Wrong
Forecasting errors are more common than you might think, and some of the world’s most recognisable brands have fallen victim to it.
KFC’s Chicken Shortage
In 2018, KFC’s attempt to switch to a new logistics provider in the UK resulted in a nationwide chicken shortage. Stores were forced to close because they couldn’t meet demand, sparking customer frustration and negative publicity. While this was largely a logistical issue, it underscores the importance of accurate forecasting and planning in managing supply and demand.
Nintendo Wii Shortages
Back in 2006, the Nintendo Wii became one of the hottest items of the holiday season, but Nintendo underestimated demand. The result? Months of empty shelves, frustrated customers, and missed sales opportunities. It was a case of not anticipating demand accurately, leading to lost revenue and a slower market penetration for a highly popular product.
Tesla’s Production Delays
Tesla has faced several challenges forecasting production demands, especially with the Model 3. Production delays led to long customer wait times and even impacted Tesla’s stock price. For a company that’s so data-driven, it’s a reminder of how even the most innovative businesses can struggle without precise demand forecasting.
The Cost of Getting It Wrong
When businesses don’t get their demand forecasting right, the consequences can be pretty significant:
Stockouts: High-demand products go out of stock, leading to lost sales and frustrated customers. In peak seasons, this can push potential customers straight to competitors.
Overstocking: To avoid stockouts, some businesses overcompensate by ordering too much inventory. This ties up capital in unsold stock, incurs warehousing costs, and often leads to discounts and markdowns to clear excess inventory.
Increased Costs: Expediting shipping or emergency restocking to meet unexpected demand can drive up costs.
Damaged Brand Reputation: Customer loyalty takes a hit when people can’t get what they want when they want it. A few missed opportunities, and they may look elsewhere.
According to EazyStock, 34% of businesses say that inaccurate demand forecasts are a major challenge in their inventory management process. With numbers like that, it’s clear that forecasting isn’t just a nice-to-have skill; it’s essential for business continuity and growth.
How Bundle Can Help You Stay Ahead
At Bundle, we get it – managing inventory demand forecasting can be a headache, especially when you’re dealing with multiple data sources and seasonal complexities. That’s why we created an AI-powered platform that simplifies forecasting and gives you the tools to stay on top of demand.
Here’s how Bundle can help:
Centralised, Real-Time Data
Bundle pulls data from all your sources, so you don’t have to rely on scattered outdated reports. With a consolidated view, your forecasting is based on the latest data, giving you a clear, up-to-date picture of inventory levels and demand trends.
Actionable Insights for Smart Decision-Making
Our dashboards don’t just display data – they make sense of it. Bundle’s AI-driven insights highlight patterns and trends that help you predict demand accurately. No more guessing games, just reliable, data-backed forecasts that let you confidently prepare for peak periods.
Seasonality and Event-Based Forecasting
Bundle’s platform helps you adjust forecasts for seasonal trends and upcoming events, like Black Friday and Christmas. By analysing past sales and external factors, we help you understand what to expect so you can adjust inventory accordingly.
Proactive Alerts and Notifications
With Bundle, you get alerts when something’s off track. Whether it’s an unusual demand spike or an unexpected stock dip, you’ll be the first to know, giving you time to make adjustments before issues escalate.
Don’t Let Poor Forecasting Hold You Back
The stakes are high, especially as we approach peak shopping season. If your forecasting isn’t where it needs to be, now’s the time to make a change. With Bundle, you can streamline your inventory management, avoid costly mistakes, and meet customer demand head-on.
Ready to make poor forecasting a thing of the past? Download our PDF to learn more, and book a free data discovery session with our team. Let’s turn forecasting from a struggle into a strategic advantage.
