What is daily sales rate:
Daily sales rate is a calculated value of average units sold per day for a given period. For example, if 90 units are sold in a 30-day period, the average daily sales rate for 30 days would be 90/30=3 units/day. Daily sales rate is a feature to enhance your purchasing recommendations in addition to our forecast recommendation.
Where to find daily sales rate calculations:
Daily sales rate calculations are found in a column called "Daily Sales Rate Recommendation" in the Purchasing section. You will see two recommendations in this column based on the item's forecast alone and a daily sales rate recommendation.
Where to find daily sales rate settings:
Daily sales rate, similar to lead time and order interval, can be set on company, supplier, or item level. Company-level settings are found in Company Details, supplier-level settings are under Suppliers, and item-level settings are under Items. ForecastRx will provide a custom recommendation for setting your average weightings that will be selected by default. You have the ability to change these settings at any time.
Daily sales rate rules - average vs. date range:
Daily sales rate can be set for either a date range or an average based on weighted percentages.
Date range: You can set the date range for any period of time going back one year. Your average daily sales rate will then be calculated based on the sales per day for the chosen time period. The date range setting is useful when you believe upcoming sales will have a similar sales velocity as a previous period. For example, if you plan on running a promotion and expect similar sales as a previous promotion, you could set the daily sales rate to the date range from the past promotion. Date range settings are also useful for seasonal products. At the beginning of a seasonal period, it is beneficial to look at the daily sales rate of a past seasonal period, rather than previous weeks, to anticipate the coming growth of demand.
Average: You will distribute percentage weights to each category for a total of 100%. Each category is a look back time frame from which your average daily sales rate will be calculated. In addition, you can assign a weight to the ForecastRx Demand. ForecastRx Demand will calculate a daily sales rate based on our forecast models shown in the Item Card.
Automatic Daily Sales Rate Settings: Your daily sales rate rules will be automatically set to predetermined weights based on your items' sales history. The reason for this is your forecast holds more value when it has more sales history to analyze. Our proprietary forecasting models are what make ForecastRx more unique and intelligent than other forecasting tools, as well as provide the most insight for spotting seasonality and trends compared to just using average daily sales rates.
For example, if an item has over 2 years of sales history, the automatic weight placed on ForecastRx Demand will be around 70% because the forecast has enough sales history to accurately predict future sales.
If an item has just over 1 year of sales history, around 20% weight will be placed on ForecastRx Demand because one complete year of history is helpful in identifying possible seasonality and trends.
Any items with less than 1 year of sales history have not completed a full sales cycle to identify trends that have not occurred yet and it is more reliable to use daily sales rate settings to pick up on sales trends.
*Note: You can reallocate your daily sales rate weights at any time you choose to.
What is adjusted daily sales rate:
Adjusted daily sales rate is your daily sales rate calculation excluding out-of-stock days. For example, if a product is out of stock for 2 out of 7 days, the adjusted daily sales rate calculation will be based on the 5 days in stock. If a product has no out-of-stock days, the adjusted daily sales rate will not change. ForecastRx uses the adjusted daily sales rate to get the most accurate daily sales rate had your product been in stock. Not accounting for out-of-stock periods can skew your daily sales rate lower and prevent you from reordering enough to keep up with demand. If you prefer not to use the adjusted daily sales rate, you can toggle it off in the Company Details settings or by individual product within the daily sales rate calculations panel.