Demand Forecasting Food Business Inventory Turnover Data Insight Guide Launched

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( — March 11, 2020) — A new demand forecasting guide has been launched by Crisp. It covers how demand forecasting can offer a range of benefits for increasing efficiencies.

A new guide to demand forecasting methods has been launched by Crisp, the global food waste reduction specialists. It covers what demand forecasting is, how it can help, and the best ways to get the best results when estimating future demand for a product or service.

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Crisp was founded by Are Traasdahl after he and his family witnessed the imbalance in the food system around the world. He made it his mission to see if he could correct global food waste with data and technology.

The new guide was launched to help businesses plan more effectively through demand forecasting. It explains that while every business needs a demand forecasting model, there is no perfect solution that works for everyone.

Demand forecasting is the process of using historical data to estimate future demand for a product or service. This allows businesses to gain valuable insights into inventory turnover, cash flow and more.

The new guide begins by covering methods of demand forecasting and how they can be used by businesses. Demand forecasting can be broken down into two methods: quantitative and qualitative.

Quantitative data leverages hard numbers to express variables, while qualitative demand forecasting results are typically more descriptive. Methods for quantitative demand forecasting include the trend projection method, econometric forecasting, and barometric forecasting.

Qualitative demand forecasting methods include market research, and the Delphi technique. One of the main advantages of barometric forecasting is that it solves the problem of identifying the value of an individual variable.

Economic forecasting looks at how different aspects of the economy interact with each other, while the trend projection method is based on actual data and can be validated in several different ways.

Meanwhile the Delphi technique can invite options from a diverse group of thought leaders and subject matter experts. This is ideal for those seeking unbiased conclusions, as it supports anonymity.

The guide states: “There is no doubt that an accurate forecast will produce better results. Generating fast, timely, and precise forecasts will strengthen your organization from end-to-end. The demand forecast is the jumping-off point for all of your decision making, so there is a definite advantage in starting from a strong position.”

It concludes by offering tips on how to improve accuracy with demand forecasting. These include questioning assumptions, applying a variety of methods, leveraging quality data and more.

Full details can be found on the URL above.