Tools for Merchandise Forecasting
Merchandise forecasting systems exist in a world unto themselves. And yet they’re basic tools that any mid-to-large-sized cataloger needs to compete successfully. Still, few catalog executives choose to make the investment in such solutions. In most cases, this reluctance is caused by two factors.
On the one hand, no one in the company may “own” the issue of making strategic inventory decisions. Merchants may make product selections, buyers decide whom to purchase from, marketers determine price points, and inventory managers must find a place to store the items or arrange for drop shipment. Yet no one takes full responsibility for determining exactly how much and when to buy each item. Merchants recommend, marketers advise, inventory managers warn and complain, and somehow everyone muddles through. Meanwhile, fill rates bounce around willy-nilly, and both backorders and overstocks become a fact of life.
