Forecast Errors
Volume 2, Issue 10, March 9, 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.
Emerson Reduces Forecast Errors with Collaborative Supply Chain Portal
Emerson is a large corporation that deals in many areas of business. The company provides other businesses with technology, software, and advice in many areas as well as providing household consumers with appliance products for their home. Given that Emerson supplies other organizations, they are embedded deeply in the supply chain. Emerson is a company that gives supply chain advice and expertise to other companies, so naturally their own supply chain is top-notch. Emerson began using a Collaborative Supply Portal system which automates inventory, order, and shipping processes. Each piece of inventory has a barcode so that the system is able to be updated each time any action is taken. The system has helped Emerson run lean business practices. Read more.
Reducing Forecast Errors by Reviewing 100 Great Supply Chain Projects
"Our readers count on Supply & Demand Chain Executive for intelligence and decision-making information on solutions and best practices for supply chain transformation," said Barry Hochfelder, editor of Supply & Demand Chain Executive. “With this year's Supply & Demand Chain Executive 100, we are featuring '100 Great Supply Chain Projects' that demonstrate the broad spectrum of opportunities for enabling excellence in the supply chain.” Read more.
Forecast Errors Means Manufacturers Stuck in Dark Ages Reports Financial Times
Jessica Twentyman reported for the Financial Times, for many manufacturers, supply chain collaboration is stuck in the dark ages. When it comes to ordering materials and components, managing inventory levels, or organizing the delivery of finished goods to customers, companies are forced continually to chase business partners – mostly suppliers, logistics companies, and retailers – via a messy stream of emails, phone calls, and even faxes. Worse still, much of the data that could give manufacturers a complete, end-to-end view of the supply chains already resides on the back-end IT systems of these partners; as much as 80 percent of it, according to some industry estimates. Read more.
Forecast Errors Eliminated with Supply Chain Visibility
Supply Chain Market reported the closest any manufacturer can get to the magic bullet is supply chain visibility. Supply chain visibility is needed to achieve manufacturers’ goal of saving money quickly and inexpensively. Supply chain visibility means all partners get access to data in real-time. Visibility to all orders allows suppliers to proactively respond to abnormal fluctuations in demand. Poor visibility often results in parts shortages. Frustrated manufacturers report having no idea they were down to the last box of parts. The result is expensive, using faster shipping methods to get the part back on the shop floor. A real-time view of parts on hand allows a supply chain manager to take action before there is a stock out, eliminating expedited fees. Read More.
Move from forecast errors to demand driven accuracy:
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