Elevate Your Long-Term Predicting Prowess
Three Questions to Revolutionize the Power of Your Forecasts
- Are we using the right forecasting methodology?
- Are we focused on the most crucial parts of our product hierarchy?
- Are we zeroed in on our truly key SKUs?
These questions may seem like they’d be hard to answer… because they are! The first crucial step in translating variable demand into a more perfect plan is to determine how and to what degree your particular demand patterns can be accurately forecasted.
Forecastability Analysis is a short-term consulting gig that can permanently elevate your long-term predicting prowess. Our experts analyze your current demand planning process using existing data, segment your product set by profitability, and determine which supply chain policies will most effectively right-size your inventory while maximizing production efficiency and capacity utilization.
The result is a clearly defined rule set you can apply to your demand planning process to generate dramatic bottom line improvements.
Forecasts Are Not Created Equal
Forecastability analysts evaluate the sales history for each of your products to determine which specific factors really drive demand in your business.
Products are segmented according to their relative value, focusing the action on SKUs with the highest impact. Both statistical and non-statistical algorithms are evaluated to zero in on the methodologies that best handle your unique product hierarchies, lifecycle curves, promotion and event patterns, and other factors.
The analysis discovers how to achieve the most accurate demand prediction for each product given that product’s inherent real-world forecastability. Algorithms provide enlightened demand planning insights for streamlining inventory optimization policies for each product while focusing the planning team and supply chain stakeholders on high-value activities.
A rundown of the big benefits:
- Intelligent segmentation lets you tailor decisions regarding production, purchasing and inventory policies to the needs of product groups.
- Classification of historical data reveals hidden truths about how demand is driven by product lifecycles, market trends, seasonal variation, statistical outliers, and other factors.
- Analysis of a range of forecast methodologies identifies the mathematical approaches best suited to various components of your product portfolio.
- Application of advanced algorithms helps you forecast troublesome “low information” items such as new products and SKUs exhibiting intermittent demand.
- The Atlas Supply Chain Analytics module lets your team perform forecastability analyses as a repeatable process.