Past

1. Technologies Used

All sales data were analyzed manually – This method is for new businesses and small startups that don’t have any historical data. It uses sales forecasts of a similar business that sells similar products.

2. Process Followed

Judgmental approach – It is used in cases of lack of historical data or in completely new and unusual market conditions.

Expert opinion – Necessary in task forecasting due to the lack of appropriate or available information to use statistical methods.

Experience – Combines data from the past supply with statistics and understanding of demand to help you make the best decisions for your business.

Judgment – Delphi Method: Experts fill out a series of questions, each building on the previous one, to arrive at a unified forecast. It is often used to predict when a certain event will occur.

Intuition – A set of methods by which a future state is predicted (by people with some knowledge that makes them likely to do so accurately), and then the data and assumptions needed to arrive at that result.

Experimental approaches to forecasting

Customer surveys – You can forecast demand based on your company’s historical sales data and seasonal trends.

Test marketing – A marketing technique designed to gauge consumer response to a product or marketing campaign by making it available on a limited basis before a wider market launch.

Consumer panels – A consumer panel is a group of individuals selected by companies or organizations to provide input and opinions on products and services for consumer behavior research.

Complex statistical methods

Time series analysis or trend method – Time series analysis consists of methods for analyzing time series data to extract meaningful statistics and other characteristics from the data.

Correlation and regression – Correlation quantifies the strength of the linear relationship between a pair of variables, while regression expresses the relationship in the form of an equation.

Present

1. Technologies Used

Analytical assessment software – Predictive analytics is used to predict future events and discover predictive patterns in data using mathematical algorithms such as data mining, web mining, and text mining.

Algorithms – Predictive algorithmic forecasting refers to an artificial intelligence-based estimation method where statistical algorithms fed by historical data predict what may happen in the future.

Various software –

• Zoho Analytics: Best overall and great for businesses that use other Zoho business tools, such as Zoho CRM and Zoho Social.
• HubSpot CRM: Best sales forecasting software for multiteam data analysis.
• Freshsales: Most straightforward sales forecasting software option for beginners.

2. Process Followed

Seasonal planning – Seasonal forecasts can reduce business costs and increase overall income. Predicted weather changes can inform business decisions from inventory levels to staffing initiatives.

Buyer trend analysis – Market analysis describes the current and future market demand for your products or services. Forecast calculates the size and growth of this need.

Demand exception management – Exception-based demand management uses a forecasting process that also identifies forecast anomalies.

Intuitive planning – Intuitive forecasting is strictly based on the reps perception of the number of deals they believe they can close in the forecast period.

Resource planning and scalability – Resource forecasting is the process of predicting your organization’s resource needs in the future.

Dynamic pricing – A method of determining the cost of a product or service that is highly flexible.

Future

1. Technologies Used

Automation – You can more effectively match demand with capacity to reduce the cost of both shortages and overages.

Scenario planning software – Management tool designed to enable organizations to evaluate the effectiveness of strategies, tactics and plans in a variety of possible future environments.

IoT – IoT is increasingly being used by supply chain professionals to detect and respond to changes in demand and inventory.

Machine learning – By improving the accuracy of your forecast base, you will also improve the overall accuracy of the forecasting process.

2. Process Followed

Predictive analytics- Predict and predict possible future outcomes using historical and current data.

Assessment of past data – A method under assessment of past data, Exponential Smoothing is based on smoothing past data trends.

Demand planning – The process of forecasting demand for a product or service so that it can be produced and delivered more efficiently and to customer satisfaction.