Let’s face it – working out how much inventory to buy using spreadsheets can feel like a guessing game, especially when you’re juggling seasonal trends, unpredictable customer behavior and regular promotions.
The good news is there’s a better way. Cutting-edge inventory planning tools like Inventory Planner by Sage make demand forecasting easier (and more accurate) than ever.
By swapping outdated manual methods for data-driven insights in 2025, you can take control of your inventory and free your team up to focus on growth.
Why is demand forecasting such a game-changer?
Poor forecasting typically leads to two scenarios. Either you end up with overstock that ties up your cash and takes up valuable space in your warehouse, or you experience stockouts that result in missed sales and unhappy customers.
Sometimes you can have too much of the wrong items, and too few of your best-sellers – all at the same time. Whichever way you look at it, poor forecasting hurts your bottom line.
But when you get it right? It’s a win-win. You protect your cash flow, avoid waste, keep your customers happy and save tons of time. That’s why nailing your demand forecasting should be a top priority over the next 12 months.
How to nail your demand forecasting in 2025
1. Use data to predict seasonal trends
Sales often follow predictable patterns. By analyzing historical sales data, you can ensure you’re prepared for busy periods – including peak season 2025 – well in advance.
Analyzing reams of data manually can be a challenge, but the best inventory planning software handles it for you.
Inventory Planner bases its forecasts on historical sales data and factors in seasonality, promotions, and market trends to create easy-to-understand demand forecasts, which are then turned into simple, customizable buying recommendations.
Within the app, forecast settings can be tweaked to use different methodologies depending on your needs. Download our free guide to see the full details on doing this.
2. Automate your forecasting process
Manual forecasting is time-consuming and notoriously error-prone. Automating repetitive forecasting tasks can save you hours every week and give you peace of mind, so you don’t have to constantly keep an eye on various spreadsheets and sales reports.
Inventory Planner automatically monitors your sales patterns and adjusts demand forecasts accordingly, so you always stay one step ahead of trends. Reliable buying recommendations are generated automatically, and you can even place POs with your suppliers directly from one platform.
That means you can focus on scaling your business, exploring new opportunities, and staying ahead of the competition in 2025.
3. Balance your stock levels
Good forecasting enables you to budget better and protect your cash flow from profit-killers like overstock and out-of-stocks.
Make sure you use a solution that allows you to tweak your stock coverage settings at every level, from SKU to supplier, so you don’t tie up your cash in slow-movers you can’t shift or run out of top-sellers.
With the right technology, you can go a step further with proactive alerts for when trends change overnight. For instance, Inventory Planner proactively alerts you to slow-sellers so you can liquidate them before they completely lose their appeal. Likewise, it can flag up when you need to order more stock to avoid running out, based on your custom lead times for each supplier.
4. Sync inventory with marketing
Whether you’re working with an influencer or planning a big promotion, it’s vital to sync your forecasts with your marketing so you won’t annoy hard-won new customers by running out of stock.
In Inventory Planner, you can seamlessly align your marketing efforts with demand forecasts to maximize sales and protect your reputation. By syncing promotions with inventory levels, you can deliver on your promises and ensure customers always find what they’re looking for.
This integrated approach helps you build trust and keep customers coming back – a crucial strategy for success in 2025 and beyond.
Master demand forecasting in 2025 with our free guide
Our Ultimate Guide to Demand Forecasting covers everything you need to know to transform your approach to inventory planning in 2025. It’s packed with expert tips, strategies for seasonal planning, advice on aligning inventory with marketing and lots more.