Source: www.pmgbenchmarking.com
Topic: Forecasting
Sort Desciption: he ability to accurately predict customer demand is at the heart of every company's effort to achieve superior supply chain performance. Research based on data from PRTM Management Consultants' ...
Content Inside: he ability to accurately predict customer demand is at the heart of every company's effort to achieve superior supply chain performance. Research based on data from PRTM Management Consultants' benchmarking subsidiary The Performance Measurement Group (PMG) reveals that forecasting performance can have a powerful impact on overall supply chain performance. It is no surprise that "Best Performing" companies those that have achieved superior business performance across key supply chain metricsalso achieve 20 percent higher unit forecast accuracy than average performers. (Best Performing companies are defined as the top 20 percent of companies achiev ing the highest index score across STRATEGY RICK HOOLE AND SHRUTI MANDANA Three Forecasting Building Blocks for Supply Chain Excellence Three Forecasting Building Blocks for Supply Chain Excellence T the following metrics: delivery performance fill rate finished good inventory and profitability.) Further analysis also demonstrates a strong correlation between forecast accuracy and customer facing metrics like order fill rate performance on-time delivery performance and inventory turnover. However while such benchmark data tells us what benefits can be achieved through improved forecast accuracy it does not answer the million-dollar question of how this can be realized. In an attempt to understand and further explore how in the quest for the ever elusive "accurate" forecast companies measure and manage forecast accuracy performance a recent study was conducted by PRTM and Chief Supply Chain Officer ( CSCO ) magazine. Nearly 40 companies submitted forecasting practice data through an online survey hosted by PMG. Consumer product companies composed the ...
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