Increasing Forecast Confidence

During this time, it becomes clear how robust your inventory management

Whether the demand is steady or markets across the globe are disrupted, the oldest rule in forecasting remains true – every prediction is wrong! Even the most experienced supply chain professionals struggle with confidently predicting future demand. If this happens often enough, you end up with the opposite of the desired outcome. Namely, you get the wrong stock in the wrong place, at the wrong time.

But what exactly is needed for better predictions? Because every prediction is wrong, many people are happy to start with a “gut feeling” and go from there. However, with so much data available to interpret, we’re going to reject guesses and gut feelings. Instead, the first step for more accurate forecasts is to get informed. The second step is to implement a forecasting strategy that is flexible and minimizes the impact of false predictions.

Steven Pauly, our senior consultant and research scientist, explains how to Increase Forecast Confidence During Unprecedented Times.