Forecast Value Added
Better forecasting will allow your supply chain to face fewer shortages, more sales, less useless inventory, and streamlined operations. Ultimately, more profits and lower costs. In this article, I will show you how to improve your forecasting accuracy and reduce the workload of your teams by using the Forecast Value Added Framework. One stone, two birds.
As I will show you in Conclusion and Next Steps at the end of the article, Forecast Value Added (FVA) doesn’t require massive investment. Its ROI will likely outshine any other improvement project. Forecast Value Added is simply waiting for a supply chain hero to lead its supply chain through this journey. Will this person be you?
Let’s imagine the following scenario: You are managing the demand forecasting process of your supply chain. It is a global supply chain selling products across multiple countries and regions. First, you use forecasting software to populate a baseline forecast. Then multiple teams provide inputs: First your demand planning team, then salespeople, and finally, there is a consensus meeting held where the final forecast number is negotiated agreed upon.
