Why are you forecasting?

In an earlier post I mentioned that forecasting is really only effective when everyone involved owns their part of the forecast and the processes that go into making and supporting it. By itself a forecast won’t help your business, and it certainly won’t fix any structural or logistical problems. But if you use your forecasts as the basis of a conversation with the people who are impacted by it, your forecasts can become a powerful tool for managing and growing your business. This is the value of the collaborative planning, forecasting and replenishment (CPFR) platform.

In my opinion a forecast has no value until it is shared with the all the people who may be impacted by it. And while we may not want to share all the factors that went into making a forecast, we should share with our partners as much information as possible about the timeframe, limitations, expectations and accuracy of our forecasts. If we are asking them to bet their business on our figures, we need to be up front with them about how confident we are in the numbers. We also need to teach them that they can trust us to share everything that we possibly can with them, so that they can be confident about working with us in the future.

 

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