How to Improve Forecast Accuracy
Forecast accuracy is at the top of the list of things that help a business plan better for the future. This blog previews how to improve forecast accuracy.
Top Reads of 2023: Unveiling Our Most Popular Blog Posts
From insightful industry analyses to practical how-to guides, our blog demonstrates the diverse range of supply chain-related topics we cover.
Our Top Blogs of 2022
Each year, visitors read our supply chain blog to take advantage of all that we have shared. This is the round up of our top posts.
Building the ROI Case for Demand Planning
Businesses spend a lot of time and money in improving their demand planning. However, the ROI is not always forthcoming. How much is a 1% improvement in forecast accuracy worth to the business?
The Importance of Product Mix in Capacity Planning
When engaging in capacity planning, it is important to consider the product mix and seasonality of your business to ensure an effective and accurate outcome.
Subscription-based Supply Chain Systems
Subscribe and save makes planning easier. Consistent demand means less fluctuation in order volume, which makes forecasting, inventory management and scheduling more predictable.
How “Forecastable” is Your Data? It’s Complex Anyway You Look at It
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.
Going Beyond Historical Data for Forecast Accuracy
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.
3 Aggregation Mistakes When Reporting Forecast Accuracy
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...
The Relationship Between Forecast Accuracy and Safety Stocks
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.