Demand Forecasting & Planning•CFO•8 min read
How Demand Planning Challenges Impact Working Capital for Growing Brands
Poor demand planning silently ties up working capital in excess inventory and missed revenue opportunities.
Inventory Is Frozen Cash
Every forecast error has a financial consequence. Over-forecasting increases inventory holding costs. Under-forecasting creates lost revenue.
How Forecast Errors Drain Capital
- Excess safety stock inflates carrying costs
- Stockouts reduce contribution margin
- Emergency replenishment increases logistics costs
- Markdowns erode gross margin
Better Planning Frees Capital
AI-driven demand planning aligns inventory with real demand patterns, freeing working capital while protecting service levels.
Explore how integrated planning improves cash efficiency.
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