Product Demand Forecasting
Why demand forecasting?
Let’s say you are manufacturer of industrial spares, then forecasting the raw materials for production is very important. Technology obsolescence is happening everywhere, so you need to produce spares where they can fit into any industry,.. Failing to do so will lead to excess inventory which is one of the biggest pain-point for an industry.
It is highly recommended that you understand the needs and demands for the product in the market, before starting to produce larger quantities. Consumer behavior is critical and tracking the same will help you find whether you are able to provide value for the price that they pay for the same.
Below are some demand forecasting methods.
•Statistics for the past 5 years and sales forecast based on that statistics to be made.
• Conducting survey with the customers to understand the demand for the product.
• Asking experts to provide a review of the product and pick analytics to estimate potential.
• Distributing the sample products and collecting consumers prospective towards the product etc.
Tie up with B2B Marketplaces
As we all know, technology has been transforming businesses and become part of our lives every day. Customers are seeking to have a stress-free shopping experience. There has been a great cultural shift in B2C market, and because of the eCommerce trends now it the time for B2B businesses to capitalize this growth and changed customer behavior.
Already there are a number of shopping sites for industrial products that can be found in the internet. Industrial aggregators are playing a vital role in the procurement of industrial products online.
If you are a new production unit and do not want to take huge risks with inventory build-up, you can tie up with B2B marketplaces where not just procurement can be done but can leverage selling their parts as well, online.
Managing Inventory Level
It is becoming critical to manage right inventory levels as otherwise there is so much amount that gets blocked without being put to better use. SMEs world over are facing this challenge and working on various methods to reduce their inventory levels.
Some of the factors that influence inventory levels are-
• Lead time
• Customer satisfaction
Inventory Management Practices
1. Better Forecasting
2. Tracking all the incoming and outgoing products
3. Having an effective inventory tracking software
4. Tracking productivity
5. Having better enterprise resource planning.
6. Recording every changes that happens to your inventory.
7. Periodical review system.
Read on Inventory management in detail here.
Partnership is always a backbone for a business be it attracting new customers, retaining existing customers, expanding your visibility, penetrating into foreign markets, etc.. This not only helps leverage two way promotions with your partner, but also helps you build a better brand credibility.One way to stay on top of your local competitors is to have strong partnership.
Great Research on Distributors
Manufacturing industry has its own line of distributors for their product range. New manufacturing plant takes time to find the right set of distributors for their kind of products to be sold in the market. Understanding your distributor background, their strengths, their customer reach, etc. can help you find right fit partners, and also region-specific partners for your products.
While setting up a new manufacturing unit it is advisable to take help from a subject matter expert, as that will help increase your chances of success and doing the right things at the right time.