Happy Staffy Co
A Case Study in Demand Planning and Inventory Forecasting
Objective
Happy Staffy Co, a rapidly growing online business, required an effective demand planning and sales forecasting system to support its monthly growth targets and ensure optimal inventory management.
Approach
RCM Consulting designed a demand planning and forecasting worksheet, taking into account sales by SKU%, monthly targets, and current stock on hand (SOH) to predict sales forecasts and inventory requirements up to six months in advance.
Established a monthly process to refresh the worksheet's data, providing an updated view of stock requirements based on the latest sales trends of products in the Happy Staffy range.
Provide clarity on cashflow expectations for stock investments.
Results
Over the course of a six-month collaboration, RCM Consulting successfully minimised out-of-stock incidents and enabled the owner to confidently place forward purchase orders three to six months ahead.
This process facilitated the achievement of the company's aggressive three-fold growth targets of 2023 especially leading into the critical sales periods of Black Friday, Cyber Monday, and Christmas.
Conclusion
By implementing an efficient demand planning and inventory forecasting system, RCM Consulting helped Happy Staffy Co maintain its rapid growth trajectory while ensuring optimal stock levels, ultimately contributing to the company's success during peak sales seasons.