Never out of stock again: automatic demand forecasts in EazyStock.
The key points
- EazyStock creates a demand forecast per article every night, based on demand pattern and product lifecycle.
- Safety stocks and reorder points are updated automatically from it, instead of being maintained once a year.
- The data basis comes from your ERP: consumption history, stock, lead times.
- Purchasing works by the exception principle: the system flags what runs out of the ordinary.
Why automatic forecasts?
Because demand changes and static reorder points don't. EazyStock detects the demand pattern and lifecycle phase per article and chooses the fitting forecasting method automatically. From the forecast, safety stock and reorder point emerge, fresh every night. A dip in demand or a new fast mover thus hits the ordering rules in days, not quarters.
Which data does it need?
Nothing your ERP wouldn't have: consumption and sales history, current stock, open orders, lead times and minimum order quantities. The data flows nightly over a monitored connection, and the results are ready in the morning.
And when the forecast is off?
That's what the exception principle, management by exception, is for: the system summarises alerts, such as articles at stockout risk, demand jumps or forecasts with low accuracy. Purchasing checks the exceptions instead of all articles. How a finished order proposal emerges from the forecast is shown by the replenishment article.
Automatic forecasts are no leap of faith: in the first weeks they run in parallel with the existing planning. Only once the forecast accuracy is proven do they take the lead.
Keep reading
ABC/XYZ analysis: a steerable assortment in 4 steps.
Inventory & PurchasingFrom slow movers to fast movers: why you shouldn't procure every article the same way.
Inventory & PurchasingInventory forecasting: forecasting with fluctuating demand.
Inventory & PurchasingInventory optimisation in 3 steps: forecast, optimisation, procurement.
Inventory & PurchasingInventory planning: the second step in inventory management.
Inventory & PurchasingLogistics vs. supply chain management: definition and differences.
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