Forecast Errors
Volume 2, Issue 1, January 6, 2015
A forecast error is the difference between the actual and predicted value. The consequences are expensive inefficiencies that can be resolved with lean manufacturing technology.
Forecast Errors Rarely Solved by S&OP
Few sales and operations planning modules offer more exception-based planning, enabling organizations to focus on the product areas where they can realize the greatest return and eliminate forecasting errors. There are idiosyncrasies that require industry-specific functionality to plan and execute supply chain strategies faster and more effectively for achieving business growth. Visualization of complex business data at a glance, would allow users can quickly read, predict and react to information, make faster, more proactive business decisions, and achieve strategic objectives that maximize profit. “Business intelligence is a tool set that continues to evolve from backwards looking to predictive and proactive,” said Steve Banker, service director for supply chain management at ARC Advisory Group. “The greater the visibility into the supply chain, the easier it is for a company to make course corrections toward business success.” View video here.
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