Sales Forecasting- Systematic approach
What is Sales forecast and why it is critical success factor for any organization.. Sales forecasting is the process of estimating future sales. Accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance. Companies can base their forecasts on past sales data, industry-wide comparisons, and economic trends. Forecasting can be broadly categorized into 2 segments Short range forecasting and Long-range forecasting. Short range forecasting (SRF) is very impulsive and based on the dynamic environment. We will be focusing more in understating the systematic approach for Long term forecasting (LRF) Let’s try to understand each method in details; 1. Casual Method Your sales outcome are dependent on many variables such as Promotional or marketing spent, Customer touch points, Price discounting, Inventories and some industry specifics such as in pharma progression of disease epidemiology etc. If you have fai