Best Inventory Demand Planning Software in 2024

In the dynamic world of supply chain management, demand planning plays a pivotal role. It's a complex process that requires precision, foresight, and the right tool.

Enter demand planning softwares. These powerful tools have revolutionised the way businesses forecast demand, manage inventory, and optimise their supply chains.

We delve into the top demand planning software solutions of 2024. We'll explore their key features, benefits, and how they can transform your business operations.

We'll also share why Prediko has all the features of a top demand planning solution.

Whether you're a supply chain manager, an operations director, or an IT professional, this guide will give you practical insights and also help you shortlist the right software.

What is Inventory Demand Planning Software?

Demand planning software is a specialised tool designed to forecast future demand for products or services.

It's a software that harnesses the power of data to predict future demand, enabling B2B businesses or Shopify D2C brands to make informed decisions.

This software not only forecasts demand but also aids in inventory management. It helps businesses maintain optimal stock levels, reducing the risk of overstocking or understocking.

By leveraging demand planning software, businesses can easily enhance their operational efficiency. It uses historical data, market trends, and advanced algorithms to generate accurate demand forecasts.

How Does an Inventory Demand Planning Software Work?

Demand planning software works by analysing historical sales data and identifying patterns and trends.

It then uses this information, along with other relevant factors such as market trends and promotional activities, to predict future demand.

The software also allows for scenario planning, enabling businesses to prepare for various demand situations.

Evolution of Inventory Demand Planning Software in 2024

The demand planning software of today has significantly evolved from its earlier versions. Over the years, these solutions have evolved, incorporating advanced technologies such as artificial intelligence and machine learning.

Over the years, these solutions have incorporated advanced features, making them more intuitive, accurate, and user-friendly. Here are some of the advanced features

AI-driven forecasting
Real-Time Data Integration
Scenario Planning
User-Friendly Interface
Continuous Learning
Scalability and customization
Integration with Supply Chain Management Systems

Key Features of Top Inventory Demand Planning Software Solutions in 2024

The top demand planning software solutions of 2024 come packed with a host of features designed to streamline and enhance demand forecasting and inventory management.

These features not only improve the accuracy of demand forecasts but also provide businesses with actionable insights to drive strategic decision-making.

Here are more details on Prediko's features:

High Precision Forecasting: Using sophisticated AI algorithms to analyze historical sales data, market trends, and other relevant factors. Such a automated forecasting provides highly accurate demand predictions, helping businesses plan effectively.
1-Click Inventory Refresh: One of the standout features is the ability to refresh inventory data with a single click. This seamless integration with platforms like Shopify ensures that your inventory levels are always up-to-date, reducing manual effort and errors.
Scenario Planning: This allows businesses to simulate various demand scenarios, providing a robust framework for strategic planning. This feature helps in preparing for market fluctuations, promotional activities, and other external factors that might impact demand.
Real-Time Analytics: With real-time data analysis, businesses can monitor demand trends and inventory levels instantaneously. This enables swift adjustments and informed decision-making to maintain optimal stock levels.
User-Friendly Dashboard: An intuitive dashboard presents clear and actionable insights, making it easy for users to understand complex data. The interface is designed to be accessible for users at all levels, ensuring effective use of the tool.
Continuous Learning: The system continuously keeps on learning from new data inputs, enhancing forecasting accuracy over time. This learning capability ensures predictions remain relevant and precise as market conditions change
Integration with WMS and other apps: Modern demand planning software integrates effectively with Warehouse Management Systems (WMS) and other Shopify apps. This integration allows for a unified view of inventory and operations, facilitating seamless coordination and improved overall efficiency

Benefits of Using A Specialized Demand Planning Software for Inventory Management

Specialised demand planning software solutions offer a myriad of benefits that can significantly enhance business operations. These benefits range from improved forecasting accuracy to cost savings and increased efficiency.

Here are some of the key benefits of using specialised demand planning software:

Enhanced forecasting accuracy using AI
Cost savings and increased efficiency

1. Enhancing Forecasting Accuracy and Inventory Optimization using AI

One of the primary benefits of using specialised demand planning software is the enhancement of forecasting accuracy. By leveraging historical data and advanced algorithms, these software solutions can generate highly accurate demand forecasts. This, in turn, leads to optimise inventory levels, reducing the risk of stockouts and overstock.

Also read: AI Inventory Forecasting for Shopify: How To Have Your Own Octopus Paul To Predict Excess Stock and Stock Outs?

2. Prediko's Forecasting Precision

Prediko excels in enhancing forecasting accuracy and inventory optimisation by leveraging several advanced features, particularly through its AI Smart Plan:

AI and Machine Learning Algorithms: Prediko’s Smart Plan employs sophisticated AI and machine learning algorithms to analyze various data points, resulting in highly accurate and reliable demand forecasts.
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Total Sales Analysis: The Smart Plan starts by analyzing your total sales for the past 12 months, providing a comprehensive view of historical performance to inform future forecasts.
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Trend Identification: The software identifies trends in your sales data, helping to predict future demand based on ongoing patterns and shifts in the market.
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Seasonality Detection: Prediko’s Smart Plan takes into account seasonality, recognizing periods of increased or decreased demand based on historical seasonal patterns.
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Other Parameters: The Smart Plan also considers various other parameters to enhance forecast accuracy
‍i) Option Popularity: Analyzes the popularity of different product options to predict future demand.
ii) Black Friday: Incorporates the impact of Black Friday sales, adjusting forecasts to account for this significant shopping event.
iii) Launch Effect: Evaluates the effect of new product launches on overall demand, ensuring forecasts reflect these spikes.
iv) Cannabalization: Considers the potential cannibalization effect where the introduction of new products might affect the sales of existing ones.

plan summary for demand plan — **Explore Prediko's Smart Plan for Accurate Inventory Demand Planning!**

3. Cost Savings and Increased Efficiency

Specialized demand planning software can also lead to significant cost savings and increased efficiency. By improving forecast accuracy, businesses can reduce inventory holding costs and avoid costly stockouts.

Moreover, the automation of demand planning processes can free up valuable time and resources, leading to increased operational efficiency.

4. Prediko's Cost Efficiency

Prediko’s Smart Plan not only enhances forecasting accuracy but also significantly improves cost efficiency in supply planning:

Optimized ordering: By accurately forecasting demand, Prediko helps businesses order the right quantities of stock, reducing excess inventory and minimizing holding costs.
Supplier cost management: The software assists in managing supplier costs by optimizing order quantities and timing, ensuring that purchases are made at the most cost-effective moments.
Inventory turnover: Improved demand forecasts lead to better inventory turnover rates, reducing the capital tied up in unsold stock and lowering storage costs.
Reduction in stockouts: Accurate forecasting helps maintain optimal inventory levels, reducing the likelihood of stockouts and the associated costs of emergency restocking and lost sales.

5. Improved Customer Satisfaction and Competitive Advantage

Finally a specialised demand planning software can lead to improved customer satisfaction and a competitive advantage. Accurate demand forecasts ensure that businesses always have the right products in the right quantities, leading to improved customer satisfaction.

6. Selecting right demand planning software for your business

Selecting the right demand planning software for your business is an important decision that significantly impacts operations. Requires thorough understanding of your business needs, careful evaluation of different software solutions, and a strategic approach to implementation.

7. Conduct needs assessment

The first step in selecting a demand planning software is conducting a needs assessment. This involves identifying your business's specific demand planning needs and determining how a software solution can address these needs.

8. Consider vendor support and training resources

Vendor support and training resources are crucial factors to consider when selecting a demand planning software. A reliable vendor should provide comprehensive support and training resources to ensure smooth software implementation and user adoption.

9. Prediko's best-in-class support

Prediko provides extensive support and training resources, ensuring that your team is well-equipped to use the software effectively. From onboarding to continuous support, Prediko is committed to your success.

10. Evaluating integration and scalability

Prediko’s software integrates with a variety of platforms through third-party applications, ensuring smooth data flow and efficient operations. Its scalable design ensures that it can grow with your business, adapting to changing needs and market conditions

#1 Integration with Shopify

Real-Time synchronisation: Keeps Shopify sales and inventory data continuously updated.
Historical Sales Analysis: Uses Shopify data to generate accurate demand forecasts.
1-Click Inventory Refresh: Simplifies inventory updates with a single click.
Easy Setup: User-friendly setup process for seamless integration.

Also read: Top 10 Shopify Inventory Management Apps in 2024

#2 Integration with ShipHero

Seamless Data Flow: Aligns warehouse operations with demand forecasts.
Automated Updates: Automatically updates ShipHero inventory based on forecasts.
Enhanced Fulfilment: Improves order fulfilment efficiency.
Scalable Solution: Scales with business growth.

#3 Integration with Bundles.app‍

Prediko also integrates with Bundles.app via third-party applications, allowing businesses to manage product bundles and track their performance effectively. These third-party integrations allow businesses to maintain a unified view of their operations, streamline processes, and make more informed decisions.

11. Assess pricing models and ROI

Finally, it's important to assess the software's pricing model and potential return on investment (ROI). The software should offer a pricing model that fits your budget, and the potential ROI should justify the investment.

12. Prediko's value proposition

Our pricing is based on your revenue. Our plans depend upon the revenue of your Shopify store. Our plans only increase with an increase in your store revenue.

Implementing & leveraging Demand Planning Software

Once you've selected the right inventory demand planning software, the next step is implementation. This process involves setting up software, integrating it with existing systems, and onboarding your team to use it effectively.

Here are some key aspects to consider during implementation:

Best practices for implementation
Training & user adoption
Measuring success and continuous improvement
Case studies: Success stories of demand planning software

With Prediko, it's super simple to get started. All you need to do is to install Prediko's app from the Shopify store.

How to get started with Prediko for Shopify?

Install Prediko's Shopify App: Begin by installing the Prediko app from Shopify App Store. This integration allows you to sync your Shopify store data with Prediko effortlessly.
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Connect Your Store: Follow the setup wizard to connect your Shopify store with Prediko. This involves providing necessary permissions and ensuring your data is securely linked.
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Data Synchronisation: Once connected, Prediko will start synchronizing your historical sales data, inventory levels, and other relevant metrics. This step is crucial for accurate demand forecasting and inventory optimization.

Setup Prediko properly for your Shopify store

Configure settings: Customise Prediko’s settings to match your business needs. This includes setting forecast parameters, and define your inventory management preferences.
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Define product categories: Organise products into relevant categories within Prediko. This helps in generating more accurate forecasts by considering category-specific trends and seasonality.
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Set up alerts and notifications: Configure daily or weekly alerts and notifications for critical inventory levels, forecast deviations, and other important metrics. This ensures that brands stay informed about key changes and can take timely actions.

Success stories of Prediko in demand planning for Shopify D2C brands

1. Cloudsharks: Achieving 35% fewer stockouts

Challenge: Cloudsharks, a leading apparel brand, faced frequent stockouts, impacting customer satisfaction and sales.
Solution: By implementing Prediko, Cloudsharks was able to integrate their Shopify store data seamlessly and utilize Prediko’s advanced demand forecasting features.
Outcome: Prediko’s AI-driven insights helped Cloudsharks reduce stockouts by 35%, optimize inventory levels, and improve response times by 50%.

2. Healf: Achieved 75x ROI by Reducing Stockouts

Challenge: Healf, a health and wellness company, struggled with managing inventory across multiple product lines, leading to frequent stockouts and lost sales.
Solution: Healf utilized Prediko’s Smart Plan to analyze total sales, trends, and seasonality while accounting for option popularity, Black Friday impact, launch effects, and cannibalization.
Outcome: Prediko’s precise forecasting and real-time data integration enabled Healf to reduce stockouts dramatically, achieving a 75x return on investment by improving stock availability and customer satisfaction

How to leverage inventory demand planning software for continuous improvement?

Monitor performance: Regularly review your demand planning software reports and analytics to monitor your store’s performance. This helps in identifying trends, spotting potential issues, and making data-driven decisions.
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Adjust Strategies: Use different scenario planning features to adjust your strategies based on market changes, promotional activities, and other external factors. This proactive approach helps in staying ahead of demand fluctuations.
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Continuous learning: Leverage continuous learning capabilities to improve forecast accuracy over time. As more data is integrated, the system’s predictions become more refined, ensuring you always have the most accurate forecasts.

Here is how to leverage Prediko's smart plan for continous improvement?

Enhance your demand planning and inventory management with Prediko’s Smart Plan:

1. Monitor Performance with advanced analytics:

Real-Time Data Analysis: Continuously monitor your store’s performance with real-time analytics.
Comprehensive Dashboards: Track key metrics easily with intuitive, comprehensive dashboards.

2. Adjust strategies using AI-driven insights:

AI and Machine Learning Algorithms: Utilise AI for precise demand forecasts and data-driven decisions.
Scenario Planning: Simulate demand situations and prepare strategic responses to market changes.

3. Enhance forecast accuracy with continuous learning:

Continuous Improvement: Prediko’s algorithms refine predictions over time for accurate forecasts.
Seasonality and Trend Analysis: Account for seasonal changes and trends to maintain optimal stock levels.

4. Optimize Inventory with Smart Features:

Dynamic Inventory Optimization: Maintain the right stock balance with real-time adjustments.
Parameter Consideration: Factor in option popularity, Black Friday impact, launch effects, and cannibalization for reliable forecasts.

Free and Freemium Options in the market

For brands on a tight budget, there are also free and freemium demand planning software options available. These solutions may offer fewer features and capabilities than their paid counterparts, but they can still be effective for smaller businesses or those just starting with demand planning.

One such option is Forecast Pro. This solution offers basic demand planning and forecasting capabilities. It's user-friendly and ideal for small businesses or those new to demand planning.

Another option is GMDH Streamline. This is a freemium solution that offers demand planning, forecasting, and inventory optimization capabilities. It's easy to use and offers a free trial, making it a good option for businesses wanting to test out a solution before committing.

Future of Inventory Demand Planning Software

The future of demand planning software solutions is promising and exciting. With advancements in technology, these solutions are becoming more sophisticated and capable of handling complex supply chain challenges.

Role of demand planning in sustainable supply chain practices

Sustainability is becoming a key focus in supply chain management. Demand planning software plays a crucial role in this by helping businesses optimize their inventory levels, reduce waste, and make more sustainable decisions.

Preparing for globalisation and external factors