At Borderless360, we strive to deliver your orders on time and maintain high service levels. Accurate demand forecasting is key to achieving this. Here's what you need to know about providing us with your demand forecasts.
Why Demand Forecasting is Important
Demand forecasting helps us anticipate your needs and prepare accordingly. Without it, unexpected spikes in orders can lead to delays, stockouts, and dissatisfied customers. Accurate forecasts ensure we have the right resources and inventory levels to meet your demand.
What Information We Need
- Special Promotions or Sales:
- Details of any promotions, including SKUs and number of units, see example below
- Duration of the promotion.
- Expected Daily Volume:
- The number of orders you expect to receive each day.
- Units per Order:
- Any changes in the number of units per order, especially during promotions.
- Timeline
- Provide your forecast at least one week in advance.
Example
Client: ExampleApparel Ltd.
Forecast Period: 1st September - 7th September 2024
- Special Promotions or Sales:
- Promotion Name: September Luxe Offer
- Details: Buy a cashmere robe and receive 2 pairs of cashmere socks free.
- Promotion Dates: 1st September - 7th September 2024
- Expected Impact: Increased order volume due to promotional offer.
- Expected Daily Volume:
Date | Expected Orders |
1st September | 200 |
2nd September | 250 |
3rd September | 300 |
4th September | 300 |
5th September | 350 |
6th September | 400 |
7th September | 450 |
- Units per Order:
- Standard Orders: Typically 1 unit per order.
- Promotional Orders: 3 units per order (1 cashmere robe + 2 pairs of cashmere socks).
- Additional Details:
- Product Details:
- Cashmere Robes: SKU #CR-1001 - #CR-1011
- Cashmere Socks: SKU #CS-2002
- Inventory Check:
- Current stock of Cashmere Robes: 500 units.
- Current stock of Cashmere Socks: 1000 units.
- Staffing Needs:
- We anticipate the need for additional staffing on 5th-7th September due to higher expected volumes.
The Impact of Poor Forecasting
Poor forecasting can be costly:
- Lost Sales: Nearly 60% of global merchants report lost sales from products being out of stock due to sudden changes in demand.
- Reputation Damage: 23% report damage to their reputation, which is even harder to repair.
Conclusion
Accurate demand forecasting is a collaborative effort that helps us serve you better. By providing the necessary information in advance, you ensure that we can meet your fulfillment needs efficiently and keep your customers happy.