Forecasting affects more than just the inventory position of a company. SAFIO Solutions has helped companies save hundreds of thousands of dollars, across multiple departments, with its Sales Analysis and Forecasting applications.
Here are a few examples:
- Corporate Performance – One SAFIO Solutions client gained visibility to its inventory performance and reduced SKUs by 50%. This led to a 64% reduction in the cost of inventory which resulted in $1.0 Million in savings. Another client increased its turn from 6.0 to 8.2, reducing their average inventory by $2.2 million! Operational performance improvements, like increased turn, enhanced profits and inventory reduction are results of good Forecasting. These improvements lead to improved cash flow across the company.
- Distribution – Improved receipt flow can enable distribution centers to improve personnel efficiencies. In addition, by identifying top forecasted items, clients of [basic-code]™ have strategically located top products to improve logistical productivity. By saving footsteps, these clients are saving money.
- Accounting – Forecasting gives Management vital information for financial discussions. Clients of [basic-code]™ have used its Open to Buy application to strategize the direction the company should take based on current trends and inventory levels. Opportunities can be maximized and liabilities minimized. In addition, because of the reporting in the tool, one client was able to identify overstated inventory, which resulted in a $20,000 savings.
- Production – Planning and Production must work very closely to ensure that there is enough capacity to produce the items needed. Production can be prioritized and workforce scheduled based on good Forecasts. SAFIO Solutions clients have used the information from the forecasting application to shift production to best reflect customer demand, increasing efficiency. One client used trend analysis to guide its Art Department to focus on developing art for emerging trends that aligned with customer demand.
- Sales – Planning must work with the Sales Force to gain insight into what the Customers are demanding and what is happening in the Marketplace. Sales can be assured that production is meeting these Customer demands when Planning and Sales work together. In addition, Planning can alert the Sales Force to emerging trends they are seeing, giving them a competitive edge.
- Human Resources – A good forecast will enable Human Resources to plan their staffing according to the production needs of the company, resulting in savings in labor costs. One client was able to strategically plan their seasonal temporary help based on the vision provided by [basic-code]’s forecasting tool. Another client gained so much efficiency through use of [basic-code]’s applications, they were able to reduce their planning staff, saving the company salary costs.
Forecasting must be a collaborative effort. Getting buy-in and input from other departments of the company should be the first step in the Forecasting Process – it’s benefits are far-reaching. Almost all areas of a company will realize benefits and savings. Contact SAFIO Solutions today to learn more about how they can help your company increase its operational performance with its Sales Analysis and Forecasting Solutions!