Ordering according to demand 

Definition 

Demand-based ordering refers to the ordering of goods that corresponds to actual demand. Demand-based ordering plays an important role in inventory management and cost control in companies, as it ensures that only the most essential items are ordered.

How is the need-based order determined? 

Various factors are analyzed for needs-based ordering:

• Demand analysis: When ordering according to demand, it is important to determine the actual demand for goods. This can be done using historical sales data, customer inquiries or other internal information. This avoids overstocking or understocking.
• Inventory management: For on-demand ordering, inventory is monitored so that companies know which products to reorder and inventory costs are kept low.
• Supplier management: Working with reliable suppliers is critical to ensure that orders are placed in line with demand. Good communication with suppliers regarding expected demand and desired delivery times is important to effectively meet demand.
• Automation with artificial intelligence: The use of software solutions with AI can optimize the ordering process. Automated systems such as foodforecast, for example, can generate accurate sales forecasts and order suggestions that lead to a demand-based order .
• Continuous monitoring: Demand-driven ordering also means constantly reviewing and adjusting the ordering strategy. By analyzing sales data, market conditions and customer feedback, ordering processes can be improved and made more efficient.

Importance of AI for demand-driven ordering 

AI plays a significant role in demand-driven ordering as it incorporates diverse factors such as real-time data, including order history, weather conditions or seasonal trends, to predict future demand. From this, a demand-based order is generated. Ultimately, this avoids bottlenecks, but also overproduction and thus food waste.