Many people may think that predict is easy, just think about some of data or future situation. In business point of view, forecasts are always wrong. We must know about who is our targets, trends at that time and even seasons are also one of the factors that can forecast etc.
Why is forecasting important to Business
Forecasting is important because businesses thrive on being prepared. If you are a business owner, you need to know as accurately as possible what your outlook will be in the future. You need to know this in order to anticipate, for example, how much of various products you will need to order from your suppliers or how much (if at all) you will need to expand your manufacturing capacity. If you do not have good forecasts of things like sales volume for the next year, you will be unable to buy the right amount from your suppliers and you might end up with excess inventory or you might run out of materials at a time when demand for your product is high.
ERP forecasting functionality ( Demand forecasting , Financial Forecasting , Supply Forecasting ) is a planning tool that helps bring greater sanity to sales, production or procurement plans and minimize out-of-stock or massive inventory buildup situations.
Benefits of forecast
Forecasting helps management to take correct decisions. By providing a logical basis for planning and determining in advance the nature of future business operations, it facilitates correct managerial decisions about material, personnel, sales and other requirements
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