Everyone owns the forecast

Forecasting and demand planning are key practices in an effective supply chain. But I’m often surprised at how the various teams that are responsible for managing the forecasting process and results see accurate forecasting as someone else’s responsibility. In some cases forecast data is not even shared. And in these cases any success in accurately forecasting demand or consumption is due more to luck than skill.

So everyone needs to own the forecast. And not just the final numbers. Every person who uses the forecast needs to own the forecast, that is, they need to know that they are responsible for letting everyone else in the supply chain know what they know about factors that will impact the forecast. If product won’t be available for two weeks or will be restricted due to raw material issues, everyone who depends on the forecast needs to know this. Hiding these factors only undermines the validity of the forecast. And if people don’t trust forecast data, they won’t use it, and then it loses most if not all of its value.

So if you are involved in forecasting for your company – and if you work in any part if the supply chain you are involved in forecasting – own the forecast and all the issues that come with creating a good forecast. You’ll get better results for your efforts.

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Comments

  • pozycjonowanie  On December 9, 2011 at 21:51

    Thanks for this great site. I am trying to read some more articles but I cant get your site to display properly in my Firefox Browser. Thank you again!

    • fitz1  On March 17, 2012 at 13:58

      Glad you enjoyed this! Please let your friends know about it, as I like this to become a place where we can openly talk about the issues that can make or break our supply chains.

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