For businesses everywhere, securing the right amount of inventory is a surefire way to prevent issues resulting from carrying too much or too little. In the event of a surplus, storage and inventory management costs may skyrocket while a shortage may encourage customers to shop elsewhere. Where can you find a happy medium between those two unfavorable situations? In supply chain management, it's done through forecasting.
Utilizing historical data on product demand, supply chain forecasting aids in planning, budgeting, and stock inventory decisions. And while forecasting can be tedious, there are many benefits to mapping out your needs:
- Budgeting: if you plan your projects in advance, you'll be able to lock in pricing and know exactly how much you'll be spending before it comes time to print
- Capacity: looking into the future, your vendors can purchase raw materials and allot press time for your projects. While some suppliers can try to squeeze in your projects, current supply chain constraints could result in the inability to source enough paper without ample notice
- Reduce potential stockouts: by working with your vendor you can plan out your projects so that you can reduce the risk of running out of product
- Seasonality: like most businesses, there are busy seasons where there is a lack of capacity in the marketplace. If you pre-plan your projects, you can ensure your projects will get to press during the peak seasons
- Product lifecycle management: long-range forecasts provide better visibility of product introductions and the retirement of existing products which can help reduce the risk of obsolescence
- Lead times: when you forecast and prelog your projects, your vendors can make sure your products are in stock which results in quicker shipping and delivery times to your customers
In preparing for future demand and potential issues arising from lack of long-term planning, it's recommended that publishers consider the benefits of forecasting. Make sure to work with your partners to ensure you're getting what you need, when you need it.
Bradford & Bigelow is a leading supply chain print partner. We work with all our publishing customers to develop forecasting plans and ensure mutual success. If you'd like to discuss more in-depth, feel free to schedule a meeting today!