Forecasting

Forecasting is an attempt to predict how much to produce and purchase, based on expected sales.

Good forecasting is important for all companies, but especially for food companies. Generally it is very expensive to overproduce, but for food companies it can also result in expired products. On the other hand, it is a shame to risk a shortage in stock, and not being able to meet demand, and thereby turning customers away.

Therefore good forecasting is essential. Forecasting must be based on expected sale, but at the same time take lead time into account, i.e. production and delivery time on all raw material and products included in a production.

It can be difficult to get the full overview and ensure good planning of both purchasing and production.

tracezilla has a forecasting feature , which enables food companies to plan months ahead. Read more about tracezilla’s Forecasting here.