According to Gartner, one of the world’s biggest IT research firms, “demand volatility” is arguably the top pain point for every business owner. In case you don’t know, volatility in demand means variations in the demand for certain products, including a fast-changing and unpredictable market. Today, many factors influence a buyer’s decision to demand your product. Fortunately, there are a lot of demand forecasting software tools out there that you can take advantage of, to make calculated predictions about the demand for your goods.
What exactly is demand forecasting and how can it benefit your business? What factors influence the choice of the right demand forecasting software? Read on to find answers to these commonly asked questions (CAQs).
What is AI-powered demand forecasting and how important is it to businesses?
What is demand planning or forecasting?
Demand forecasting is one of the many fields of data analysis. Its primary function is to assist in creating various forecasts, which are much needed to estimate future demands for your goods or services. Today, AI-powered demand forecasting is an effective response to demand volatility.
Traditionally, many organizations take advantage of demand forecasting, a type of predictive analytics, to estimate the demand from various customers, using historical data. However, with the advancement in technology, many businesses are now going an improved way of forecasting demands, called AI-powered demand forecasting software.
Benefits of using the right demand forecasting AI technology
Demand forecasting, which many people also called demand sensing or demand planning, offers business owners tons of benefits. With artificial intelligence, these benefits have now increased:
- The best AI-powered demand sensing software tool will improve and become more accurate over time. It’s simple; with time, machine learning algorithms will get to study existing data. This often allows them to become more accurate in predicting demands for goods or services.
- With the best AI-powered demand planning software, such as Remi AI, you’ll be able to understand when to bring in more products. Interestingly, making your goods available for buyers to access at the right time is a good way to achieve higher customer satisfaction.
- The best demand forecasting AI software can always help (indirectly) to optimize your HR effectiveness and costs. It’s pretty simple; with the right tool, your HR team can always make considerations that matter on how to use full-time and part-time staffing. This move is very important for the effectiveness and productivity of the HR department.
Factors to consider when selecting a good demand forecasting AI software
- Functionality
There are many AI-powered demand forecasting software tools out there. Unfortunately, these tools aren’t created the same way. This is why you need to always check the functionality of the demand-sensing software before picking the right one.
Speaking of functionality; the software you pick should be able to cater to your business needs. So, ask yourself these questions before going ahead to pick your preferred tool:
- Does my business need long-term or short-term predictions of demands?
- Do you want to make forecasts for new products in your organization?
- Can the software make accurate estimations of price elasticity?
The answers to the questions above should help you make the best demand forecasting AI tool.
- Seamless integration with other tools
As a business organization, you certainly have different tools, such as ERP software, to manage your business operations. When selecting the right demand forecast AI tool, make sure to go for one that allows seamless integration with your other business tools. This way, your employees won’t face the common issues attached to sharing data, creating demand trends, and acquiring complete historical data.
- Training & Support
Does the demand forecast AI service provider offer the best training and support for your employees? The fact remains that your workers need the best possible support from the manufacturer of the software both before and after the implementation process. Only this way will they be able to use the software the right way and achieve the best results.
Reno AI is one of the best software tools that you can consider for your business. You can learn more about why picking Remi AI as your preferred demand planning software is worth it.
