Forecasting

About forecasting

Forecasting makes it easier to plan your production and your purchases in relation to your sales. You can plan days, weeks and months ahead.

Key functions

  • You can estimate your sales per customer based on previous sales.

  • You can calculate your consumption of semi-finished products, raw materials and packaging for production based on your recipes. You can either estimate consumption for production per process step (per recipe) or through a chain of process steps from the finished good all the way to the individual raw material.

  • The forecasting feature takes lead time into account, i.e. the time it takes from the goods being ordered from the supplier until you have received them or the time it takes to produce a product.

  • The function also takes your reorder point into account, i.e. how many units you must have as a minimum in stock before you need to produce or order new supplies.

  • Create production orders and purchase orders directly from the forecasting feature.

 

 

Quick guide for trading companies

Would you like a reminder on how to use the forecasting function in tracezilla? Then you can see the quick guide below.

1) On the sales page: Estimate or enter expected sales.

2) On the supply page: Create purchase orders based on expected needed supply.

 

Quick guide for manufacturing companies

Would you like a reminder on how to use the forecasting function in tracezilla? Then you can see the quick guide below.

1) On the sales page: Estimate sales or enter expected sales for finished goods.

2) On the supply page: Enter expected supply of finished goods (how much is planned to be produced) so that it meets supply requirements from sales.

3) on the supply page: Estimate supply of raw materials for production.

4) On the supply page: If relevant, create production orders.

5) On the supply page: Create purchase orders based on expected needed supply.

 

 

Estimate forecast for sales

  1. Click Warehouse in the top menu and select Forecasting. in the drop-down menu. Click Sales in the upper right corner.
  2. Indicate which SKU(s) you wish to estimate forecast for in the filter Method for selecting SKUs.
  3. Select the customer you wish to estimate the forecast for. Tick the box next to the customer name.
  4. Select period From and To. Click Estimate Forecast.
  5. In the dialogue, you can now apply a trend or a correction for the expected sales in percentage. You can indicate whether it should be calculated based on
    • Current forecast in the selected period (sales orders that have already been created).
    • Same period last year.
    • Period of same length before selected period. If two weeks have been selected in the forecasting, it will therefore be based on what was sold in the two weeks before the selected period.
    • Correction is applied if you expect to sell a certain percentage more in the selected period than the period on which the estimate is based.
  6. Click Calculate.

You can also enter expected sales in the yellow row, e.g. if you do not have sales history in tracezilla yet.

You can also enter expected sales in a spreadsheet that you can upload into tracezilla again. Click Import and select Get Import Template. Once you have entered the expected sales, save the file and click Upload in tracezilla.

 

Shown Scenario

When figures for the expected sales have been entered or the sales forecast has been estimated, the figures are saved in a so-called scenario. As a starting point, the scenario is named “Standard scenario”.

You can create multiple scenarios and enter different sales figures in each scenario. Click + to create another scenario. You can edit the name of the scenario by clicking Edit Scenario. You also have the option to delete a scenario by clicking Delete Scenario. Please note: Deleting a scenario will clear the numbers from that scenario.

 

 

Plan production and estimate consumption for production

  1. Click on Supply in the top right corner.
  2. Select Finished goods in the filter Method for selecting product types on the left side.
  3. Enter expected supply i.e. how much you want to produce in the yellow row.

    Please note: if you want to estimate consumption for production through all process steps (recipe associated with finished product, then recipe associated with semi-finished products, etc.) the time granularity must be Daily.

  4. Tick the box Totals based on exp. supply to see how planned production affects inventory.
  5. Click on Estimate consumption for production.
  6. Choose whether you want to 1) estimate one step backwards in the production process based on the recipe associated with the finished product - choose No or 2) whether you want to estimate through all process steps to the individual finished product - choose Yes (see note above).
  7. Confirm by clicking Estimate.

 

 

Convert forecast to production orders

  1. Click Supply in the upper right corner.
  2. On the right side, you can now select a specific manufacturer if a partner relationship for the SKU has been specified.
  3. Indicate which SKUs you would like to create orders for using the filter Method for selecting SKUs.

    Typically you choose to see the supply and plan production orders for finished goods first and afterwards semi-finished goods (intermediate goods).

  4. You can sort by SKUs that are below the reorder point with the filter on the left.

    SKUs will appear in the results if the stock is below the set reorder point. SKUs that gets under the reorder point outside the selected period are also included.

  5. Enter expected supply in the yellow row, i.e. the quantity you want to produce.
  6. Select the SKUs you want to create orders for by ticking boxes. You can also click the Select All button.
  7. Select period From and To. Then click Create order. Select Production Order.
  8. Fill in the order details.

    The order date is set according to the product type with the longest lead time and the delivery date is set to the beginning of the selected period. You can change the lead time in the SKU settings.

  9. Click Save.

 

 

Convert forecast to purchase orders

  1. Click Supply in the upper right corner.
  2. Use the filter Method for selecting SKUs to the left to select the SKUs for which orders must be created, e.g. search by tag or select Raw Materials.
  3. On the right side, you can now select a specific supplier if a partner relationship for the SKU has been specified.
  4. You can sort by SKUs that are below the reorder point with the filter on the left.

    SKUs will appear in the results if the stock is below the set reorder point. SKUs that gets under the reorder point outside the selected period are also included.

  5. Select the SKUs you wish to create orders for by ticking the boxes.
  6. Select period From and To. Then click Create order. Select Purchase Order.
  7. Fill in the order details. You can follow the instructions for creating purchase orders here.
    • The quantities ordered will be set so that the quantity will not go below the reorder point at any time within the selected period.
    • The order date has been determined by the SKU with the longest lead time and the delivery date is set to the beginning of the period. You can edit the lead time for the SKUs, read more here.
  8. Click Save.

Alternatively, you can create multiple purchase orders at once.

Then click Bulk create and then Purchase orders.

tracezilla will then create the purchase orders based on the SKUs that are below the reorder point in the selected period, and based on which supplier is specified in the partner relationship for the SKU. If several suppliers are specified, tracezilla will look in the price lists to see which supplier has the lowest price for the raw material in question.

 

 

Usefull to know before you start using forecasting

The forecasting function uses data from SKUs and recipes. Therefore, you may benefit from reviewing the following before using the feature:

  • Set up partner relationship for SKUs if you want to use the forecast based on suppliers of raw materials and finished goods that are sold to certain customers.
  • Make SKUs and recipes inactive that are no longer in use.
  • Review and update the SKUs and quantities of these that are specified in recipes.
  • Set a reorder point for SKUs, i.e. a minimum stock for when new supplies needs to be ordered.
  • Specify lead time for SKUs, i.e. the time it takes from the goods being ordered from the supplier until you have received them or the time it takes to produce a product.
  • Optionally set up parcel settings for raw materials.

 

 

Guide for the rows in the tables

Sales

Heading Explanation
On Order The sales orders already entered in the application.
On Quote The sales quotes already entered in the application.
Expected Here you can enter your expected sales for the SKU. This is the only row you can enter data into. The other rows indicate sales quotes and sales orders already created.

Supply

Heading Explanation
Supply The supply added to your inventory from production orders and purchase orders in the period.
Expected supply You can enter your expected supply here.
- (Actual Sales/Quotes) The actual sales on sales orders and sales quotes already entered in the application.
- Expected sales Here you can enter the expected sales for the SKUThis is the only row you can enter data into. The other rows are calculations based on stock movement and the expected sales that you entered.

If you already entered expected sales in the sales forecasting table, it will appear here.

NB. The expected sales must include the actual sales/quotes.
- Consumed (production) Indicates what has been consumed in production of the SKU in the period.
- Estimated consumption for production The expected amount of raw material consumed in production.
- Adjustments Indicates any waste or loss in the period.
= Stock Movements Sums up the stock movements of the period, i.e. what went in or out of stock in total.
Initial Inventory Your inventory at the beginning of the period.
End Inventory Your inventory at the end of the period.

Outline