Demand Forecasting

Brochure: A Unique Concept in Demand Forecasting
Brochure: A Unique Concept in Demand Forecasting


The Flostock Brochure "A Unique Concept in Demand Forecasting" contains a short description of how the Flostock Model supports Demand Forecasting. You can download it here.

Predicting for profit

Ever lost a sales opportunity because you did not have enough stock? Or do you have too much working capital? For cost effective chasing of opportunities you need reliable forecasting.

Flostock supports companies in creating a reliable demand forecast, starting from key economic indicators for the true end markets at the end of the supply chains. The supply chain in between the end market and your organization modifies and buffers said ultimate demand. The Flostock approach includes this behavior, using software that calculates the effect of changing stock levels throughout the supply chain.  

Accuracy levels above 90 % can be achieved with the Flostock tool, which has already proven its reliability and accuracy in a range of industries. 

Sales forecasting is essential for optimizing operations and for revenue planning.

Demand for the products of a company is mainly determined by three factors that are difficult to distinguish without Flostock’s pioneering supply chain models. The first and strongest factor is the end market. The second factor is inventory changes throughout the supply chain. The third factor is market penetration. 

The end market determines 80 to 90 % of your demand

Each supply chain is a closed system, like a tube: no product gets lost, and no product leaves the tube that was not put in. Of course the products in the tube may get modified, reacted, painted, cut into pieces, assembled, painted, packaged and sold. But each molecule that leaves the chain has at some point entered the chain. So when consumption in the end market increases 1 %, supply at the beginning of the chain also grows 1%. This first factor determines 80 % to 90 % of upstream demand. 

Changes in inventory determine 5 to 10% of your demand

Enterprises keep inventory proportional to an average sales volume over a certain period. As a result, inventories in the whole supply chain go up and down with demand. This volatility is included in the Flostock models and adds 5 to 10 % to the accuracy of the forecast.

Market penetration of your product determines 5 to 10 % of your demand

All successful products go through a product life cycle, beginning small, growing with a hopefully exponential growth curve and reaching a certain plateau at maturity, before eventually going down again. This is the third factor that determines your upstream demand and it is included in Flostock’s supply chain models, increasing the accuracy with an additional 5 to 10 %.