Sales forecast is an estimate of how much of a product or service will be sold in a certain period of time. In this article, you will learn about the reasons and benefits of making this forecast, as well as to differentiate it from demand planning.
The sales forecast is the first step in the Planning Demand. After doing it, one must also include strategies to launch new products and campaigns in the Marketing area. At this point it is essential to involve the areas of:
To assess the possible limitations and the resources that will be requiered.
It is very important to make a sales forecast correctly, since that is where the production budget, personnel requirements and the budget for purchases or inputs come from.
Demand Planning allows us to:
At Casa Sauza, we have a Demand Planning aligned with the objectives of the Commercial team. To us, customers and large markets are just as important as developing clients. This has led us to have better control and to immediately identify any deviation from the demand plan, since any change in demand has a direct impact on the planning of the agave, which requires years for its maturation and, therefore, is not so easy to dispose of immediately.
It is important to differentiate Sales Forecast from Demand Planning: Sales Forecasting is a mathematical estimate of how much will be sold in a given period of time, while the Demand Planning is the integration of the Sales Forecast with the marketing input or the commercial area, considering the trends or events that may affect the behavior of our demand.
Forecasts are not exact, but they do give us tools to consider the projection or behavior of a product or service in a period of time.
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