We are excited to announce that we are rebranding Arkieva to fuel growth, strengthen our position in the market, and continue to be a recognized leader in the supply chain industry. Over the past few years, we have been relentlessly focused on solving the most complex planning challenges through simple, intuitive, end-to-end solutions leveraging our best-in-class data scientists, software developers, and supply chain optimization consultants.
These “key tools” balance a need for simple with a need to handle the complexity of SCM – following the IBM adage – complexity exists whether you ignore it or not, best not to ignore it.
One of the many ways to improve the forecast is to forecast using a pyramid process, starting at the base, then forecasts the subsequent levels moving upwards. The objective of using the pyramid forecast process is to use the less detailed portions of the pyramid to improve the base level forecast of the pyramid.
Our focus in this blog series has been to establish forecast accuracy targets. In very general terms, the goal should be to add value to the business through the forecasting process. We have however focused on the forecast value add and using that to create a minimum acceptable forecast accuracy target in the previous blog. Now we will take that a step further and talk of ways of improving it.
We have all seen it in the news. Covid-19 outbreaks, labor shortages at the port as well as in trucking, and port delays coupled with high demand from consumers are causing major supply chain issues. Shipping containers are in short supply, or perhaps a better way to say it is that they are waiting to be unloaded or loaded resulting in a shortage. In this blog, let us try to enlist some possible future impacts of this situation. Let us look at it from the perspectives of the different players in the supply chain.
Everyone is talking about supply chains these days. Ever worsening weather, a global pandemic, and a labor shortage have generated a perfect storm that has pushed global supply chains to their breaking point. I propose that the problem has been building for some time and this perfect storm may just be the reset we need.
It is important to measure and improve the forecast accuracy at the right level of aggregation. If you measure at too high a level, your accuracy picture will look better than what it needs to be as the data at high (aggregated) levels is more forecastable. By contrast, at too low a level...
A successful demand planning process accurately forecasts demand and revenue streams, and subsequently drives the next steps in the S&OP process which are Inventory, Supply Planning, and Optimization. Therefore, it is a crucial step in an organization's S&OP process.
A company’s total inventory consists of many types of stock such as strategic, anticipation, safety, cycle, and unplanned. Cycle stock is most connected to the demand forecast; it is expected to be sold as the forecast becomes real demand. Safety stock on the other hand is extra stock to deal with the variability of the demand or supply. As such, it is not always linked to forecasting accuracy.
Learn the best approach to setting forecast accuracy targets and how to set expectations for your management team.