Demand Planning: How to avoid dead stock and product shortages
To perform efficient Demand Planning, avoid guesswork. Connected tools like Jestor allow crossing sales history with current inventory to automatically suggest what to buy, avoiding dreaded Stockouts (missing product) or Overstock (stagnant inventory).
The cost of buying wrong
Buying is a bet. If you bet wrong:
- Bought too much: Cash tied up in stock, cash flow suffocated.
- Bought too little: Customer wants to buy, but can't. You lose the sale to a competitor. Excel fails here because it's not dynamic. It doesn't know that "next month is Black Friday."
Automating Replenishment in Jestor
Create a system that calculates purchasing needs for you.
The Logic in Jestor:
- Average Sales: The system calculates how many "Blue Sneakers" sold in the last 3 months.
- Lead Time: The system knows the supplier takes 15 days to deliver.
- Reorder Point: When stock hits 20 units, Jestor creates an alert: "Buy 50 more units now to avoid running out."
Frequently Asked Questions (FAQ)
What is ABC Analysis? It classifies products by importance. "A" items are the 20% generating 80% of revenue. InJestor, focus automation on "A" products.
Does the system consider seasonality? You can create manual rules or integrate with AI to predict peaks (e.g., increase toy stock in October).
Does this replace the buyer? No. The system suggests the purchase ("Suggested Order"), the buyer reviews and approves. Technology does the math, humans do the strategy.
Conclusion
With Jestor, your purchases are based on real data, ensuring healthy inventory and positive cash flow.
Plan your demand intelligently:https://jestor.com/