Thursday
Jun122014

Forecasting sales low

 

Click to enlarge. 

In June, we can see in this scenario that our actual sales came in approximately $300,000 higher than our forecast. We achieved $4,543,264 on a forecast of $4,279,302. Immediately we know that this has an impact on our inventory. As we can see, we are now opening up July almost half a million dollars short of inventory.

 

Our July plan was to have $10,957,958 of stock at the beginning of the month. After surpassing our June sales by such a significant amount, we are now only opening July with $10,470,652 in inventory. It may be difficult to meet future month’s sales plans if we don’t have enough stock.  

 

 

 

 

On the positive, higher sales means much better gross margin for the month. We actually generated 11.27 percent versus the forecasted rate of 5.8 percent. 

 

 

Having realized June’s sales, we’ve only touched on 2 metrics in July and the effect that our inaccurate forecast has had. What we haven’t looked at (but will get to) is the longer-term impact, over three or four months.