Key account management is not just about selling. Part of maintaining the relationship is understanding that the approach needs to be collaborative. A good key account manager involves the marketing department and purchasing department, to help them we need to forecast well.
Accurate forecasting is integral to effectively servicing retail customers. If a supplier can accurately forecast then they can positively affect change in inventory levels and out of stock levels. Most current forecasting techniques are inaccurate. Most forecasting is based on historical sales rates and building in for future sales. This leaves the calculation vulnerable because if the forecast was incorrect initially then all subsequent forecasts will be too. Most companies still base forecasts on shipments to DC’s or stores on the basis of sell in figures rather than retailer sell through data. iRam bases forecasts on sell through data. iRam allows for variable growth depending on our clients’ targets and projections.
Some benefits of forecasting:
- Helps to eliminate large forecasting errors
- Aids in the transformation of a more stable forecast into lower more controllable operating costs
- Reduces workload and cumbersome tasks
- Assist with sales and order forecasting
- By using the following it is possible to attain more realistic and unbiased forecasts
- Historical sales
- Projected sales
- Influence of out of stocks on all of the above