Boost your warehouse operations with WMS forecasting

Boost your warehouse operations with WMS forecasting

Forecasting is essential in running an efficient warehouse operation, and a modern WMS (warehouse management system) is a great tool to improve your methods. But how does it work? How do you use modern technology to supercharge your operation? This blog post outlines various forms of warehouse forecasting, why they are so important, and introduces our cutting-edge nyce.logic WMS. 

What is forecasting?

Forecasting means using historical data to estimate future business needs. For warehouses, this usually involves anticipating factors like demand, inventory, labor and capacity. Statistical methods have been used historically, but modern AI and machine-learning technology has introduced new ways of forecasting.

Running a warehouse is a complex task; improving the operation over time is crucial. Forecasting offers you the information needed to make data-driven decisions. By optimizing the warehouse, you can increase efficiency, accuracy and safety, contributing to long-term business success. Now, let’s have a look at different types of WMS forecasting.

4 types of WMS forecasting

Demand forecasting

Dealing with demand fluctuations is one of the biggest challenges for warehouses across the world. No business wants to have their shelves filled with products that are not selling, and you definitely do not want to run out of popular merchandise during a peak period. Demand forecasting is invaluable to achieve just the right balance. 

You can analyze historical data to identify seasonal variations, trends and the impact of previous campaigns. The next step is using AI and machine learning to even better predict future demand. Predictive analysis gives you the tools to plan for seasonal variations, campaigns and other important events when you need to have just the right stock available.

Inventory forecasting

Inventory forecasting estimates the optimal inventory levels to meet predicted demand. It can also help your business create buffers, making it well-equipped to deal with uncertainties and variations. Demand and inventory forecasting are closely related concepts, but they focus on different aspects of the supply chain. Inventory forecasting is not as broad, focusing on the warehouse stock and logistics side, rather than the full-scale business operation.

With the right WMS in place, you will never again have to deal with over- or understocking issues. Inventory forecasting will help you have optimal stocking levels at all times, and to continually improve based on data-driven insights. 

Capacity planning

Utilizing warehouse space in the best possible way is a challenge for many companies. Every meter counts, and you have a lot to gain by optimizing it. Capacity constraints may also occur over time, as the business grows; failing to be prepared can halt your business development.

Capacity planning will help you forecast the space requirements in advance, ensuring that there is adequate space for incoming goods. Modern WMS features will assist you in capacity planning, using real-time data and forecasting algorithms to determine the best strategies.

Labor forecasting

Labor forecasting is another important aspect of warehouse management. Coordinating staff and optimizing workload can be challenging, but it is worth the effort. Improving your labor forecasting allows you to use your resources more effectively, achieving better results. The more labor-intensive your warehouse is, the more you have to gain from labor forecasting.

Some traditional WMS systems offer limited labor forecasting (or none at all), but many of today’s modern solutions include it. Using tools like nyce.logic’s’s Workforce Management feature can help you manage schedules, monitor performances, set goals, allocate tasks, and much more. Being one step ahead in labor forecasting can prove a strong competitive advantage.

Statistical forecasting methods

Forecasting has traditionally been performed through statistical methods. By using metrics like Simple Moving Average (SMA), Weighted Moving Average (WMA) and Simple Exponential Smoothing (SES), businesses can make predictions that will help optimize warehouse operations. Statistical methods are still highly relevant and useful, complementing the cutting-edge technology used in many modern WMS systems.

AI and machine learning technology

AI and machine learning is significantly improving forecasting accuracy, enabling businesses to predict demand, manage inventory, and reduce waste more effectively than ever before. The complex algorithms can process historical data, trends and patterns to make actionable predictions. Using this data-driven, future-focused approach gives businesses a whole new edge when it comes to forecasting.

Why is WMS forecasting so important?

It goes without saying that warehouses are dependent on moving products as efficiently, accurately and safely as possible. Modern, tailored forecasting methods will give you the tools to utilize your warehouse space and proactively deal with trends and variations. Having a modern WMS system in place, including forecasting functionality, will also prepare your business for the next generation of technological developments.

To put it simply, implementing sophisticated forecasting and WMS functionality is an investment in the future that will improve your operation, allowing you to remain competitive in the modern marketplace.

Conclusion

Forecasting is an essential part of your WMS setup, and so is the rest of the IT architecture. Using a system with a proven track record will allow you to optimize your operations, staying ahead of the competition. 

Introducing nyce.logic

nyce.logic WMS powered by Extenda Retail is a future-focused, flexible solution for businesses that want to enter the new digital era. No more slow, manual processes, and no more unnecessary complexity. It is built by and for logistics experts, accessible on any device and easy to use. If you are looking to improve your business through WMS forecasting and other cutting-edge functionality, we can be your long-term partner.

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