Forecast Errors
Volume 2, Issue 9, March 2, 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.

Lack of Supply Chain Collaboration Drives Forecast Errors

Logistics Insight Asia looked at how collaboration and supply chain go hand in hand. The reality is that each aspect of a manufacturer’s supply chain, whether its procurement, design engineering, or logistics, often operate in very distinct silos and each department rarely collaborates, shares, or communicates with one another. Today’s supply chain executives should be able to respond to changes in real-time and use up-to-the minute information to drive intelligent decision making. If the necessary data cannot be shared throughout the supply chain because systems are not integrated, companies will be left with costly forecast errors. Read more.

Lack of Visibility Driving Forecast Errors

Genco Insights recently reported that lack of visibility is a pressing concern driving forecast errors. More than half (55 percent) of the participants in a recent supply chain survey cited a lack of real-time monitoring as one of their major concerns. Poor visibility results in a number of issues, such as including parts shortages, ignorance of how many items a retailer or manufacturer has at its disposal, and higher transportation costs as a result of poor inventory management. Read more.

Forecast Errors in the Omni-channel: Retail Supply Chains’ Challenge

Pymts.com recently discussed the fact that retailers’ supply chains generally are not optimized to support the new omni-channel environment, particularly with regard to the changing supply needs created by the expansion in mobile and online shopping, according to a recent report in which PricewaterhouseCoopers surveyed 400 retail CEOs.  Enhanced efficiency in buyers’ B2B relationships is taking on increased importance as retailers look to keep up with changing consumer and product demands. Read more.

Reducing Forecast Errors Possible for Oracle ERP Users

Oracle profiled Gold Partner solutions  offering execution platforms that facilitate the flow of information and materials across boundaries to give complete visibility while making better use of time and resources. Modular, web-based tools are designed to complement and extend the value of the businesses systems already in place, such as MRP and/or ERP. describe how these platforms can be deployed quickly in high-impact areas—whether in finished goods, raw materials replenishment, or production management, and get an immediate improvement across the board. Read More.

Move from forecast errors to demand driven accuracy:

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