Creating a Demand Forecast in Business Central
Posted on: May 29, 2023 | By: Page Wildridge | Microsoft Dynamics Business Central
Business Central allows your business the ability to accurately forecast demand and align production capacity that is crucial for optimizing resources, improving customer satisfaction, and reducing costs. In this blog post, we will discuss important elements of creating accurate forecasts using Business Central, and explore how it can improve your businesses production planning.
Configuring Forecast Setup:
Business Central allows you to define your various parameters such as the forecast horizons and forecast methods. The forecast horizons specify the time span over which you want to generate predictions, which allows you to focus on short term or long term forecasting. The forecast method can be set to options such as, “Sales and Inventory Forecast,” “Item Forecast,” or “Customer Forecast.” These options allow your business to predict various demands for your customer groups. Additionally, you can forecast by period and location.
Data Collection and Analysis:
BC integrates with various data sources, including your businesses ERP system, sales records, and market data. By collecting comprehensive data about historical sales, customer behavior, seasonal patterns, and market trends, you can gain valuable insights into demand fluctuations. This serves as the basis for accurate demand models.
Analyze Forecast Results:
After you have generated forecasts in Business Central, it is essential to analyze the results and evaluate their reliability. BC provides reports that allow you to visualize forecasted demand, compare it with actual sales, and identify any discrepancies. These insights allow you to fine-tune your plans, adjust inventory levels, and make informed decisions about optimizing resources.
Next Steps
Logan Consulting, a proud Microsoft partner, specializes in empowering our clients with the knowledge they need to successfully use Business Central. Contact an expert today to learn more about what the software can do for your company.