Tools for Merchandise Forecasting

A Matter of Perspective

Essentially there are three views of demand forecasting: supply chain, retail and direct commerce. The latter can be divided further into two distinct groups: catalog and Web.

Most merchandise forecasting systems on the market are designed for the supply chain or retail worlds. In the supply chain environment forecasts of demand are used to plan production and distribution. At its most sophisticated, distributors and retailers work closely with manufacturers and producers in a formal, collaborative planning, forecasting and replenishment (CPFR) environment. While this holds significant promise as a future supply chain management platform, such systems are not our concern here.