When it comes to inventory planning, the further out you can forecast, the better you can plan.
Typical ERP systems provide a short inventory planning horizon that is usually based on last week’s purchase orders and what needs to be replenished this week. This type of planning is at an execution-level, often requiring manual inputs to adjust for trends and season and define min/max targets.
You can extend your inventory planning horizon by weeks and months
By extending the inventory planning horizon, retailers can transform execution planning into operational and tactical planing. These levels of planning minimize investment tied up in excess inventory and improve inventory turnover and replenishment. This diagram illustrates how 4R helps extend typical ERP planning capabilities with longer planning horizons based on accurate demand forecasting that optimize replenishment and purchasing.