NETSTOCK | Overview of the menus | Forecasts

Forecasts

Use Forecasts to view a location's:

  • Sales and forecast summary; to view seasonality and trends

  • A year-on-year comparison of sales history and future forecast; to evaluate whether the growth/decline is appropriate

  • Forecast exceptions; to find those items that consistently have forecast more than sales, or sold more than the forecast

  • Forecasting performance; a view of total sales and the bias between "sales exceeds forecast" and "forecast exceeds sales"

 

The title bar options

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Use the Filter to view the sales and forecast summary for a subset of items or suppliers.

This enables you to focus in on, for example:

  • Your very important items

  • A particular supplier

  • A group of items

 

Sales and forecast summary

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The sales and forecast summary displays:

  • Sales history (blue line); the full sales history in the App

  • Future forecast (gold line); the next 12 months of forecast

  • Forecast history (green line); the forecast for the previous 12 months

Note: The summary graphic is a consolidated view of the location selected and any selections chosen in the filter.

 

 

When reviewing the sales and forecast summary (in conjunction with the forecast comparison), it may become evident that the forecast is either too high or too low based on the previous years sales. Or a seasonal spike may appear too high or too low.

At this point you may select to globally adjust forecasts for this location/grouping. You do this by clicking the Adjust forecast button.

 

The default view for the sales and forecast summary is Cost price. Options available are:

  • Cost price

  • Selling price

  • Margin

  • Units

Note: the prices above are current prices.

 

Year-on-year comparison

The Comparison view enables a quick analysis of year-on-year sales growth/decline and allows you to check whether the future forecast is continuing this trend or not.

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The year-on-year Comparison totals up the history and future forecast with each bar representing 12 months:

  • Sales history (blue bars); from right to left

    • 2017-2018; the last 12 months

    • 2016-2017; months 13-24

    • 2015-2016; months 25-36

  • Forecast (gold bar);

    • 2018-2019; the next 12 months

 

The default view for the sales and forecast summary is Cost price. Options available are:

  • Cost price

  • Selling price

  • Margin

  • Units

Note: the prices above are current prices.

 

Forecast exceptions

Sales exceeds forecast

If you continue to sell more than you forecast, and you buy to the forecast, chances are you will not have bought enough and will run out of stock.

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Lists those items selling more than you thought (or forecast) over the period selected.

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If you continue to sell more and you don't increase the forecast, you are at risk of running out of stock.

 

 

Forecast exceeds sales

If you continue to forecast more than you sell, and you buy to the forecast, chances are you will have bought too much and are at a bigger risk of generating excess inventory.

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Lists those items where sales are lagging the forecast – you have forecast more than you are selling.

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If you purchased inventory based on an inflated forecast, you may well have over-bought.

By selling less than you thought, there is a bigger risk of generating excess inventory.

 
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Drill-through to an individual item for further investigation by clicking on the Product code. To open the item in a new window:

  • CTRL-CLICK for Windows

  • COMMAND-CLICK for Mac

Drill-through to the full list by clicking Full report.

 
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The default view for the Period selector is 12 periods (months). Options available are:

  • 3 periods

  • 6 periods

  • 12 periods

 

Forecasting performance

Forecasting performance compares the monthly total sales value with the level of "sales exceeds forecast" and "forecast exceeds sales" over the last 12 months.

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Trends to aspire to:

  • The overall level of "sales exceeds forecast" and "forecast exceeds sales" is reducing

  • That the bias, if any, is towards "sales exceeds forecast" ("forecast exceeds sales" is worse as it generates excess and ties up money that could be better used on stock out or potential stock out items, for example)