Forecasting helps organizations to predict the future and create better business plans
Offering the right product in the right place at the right time for the right price is the hallmark of any company. Companies that are best at demand forecasting have on average 15% less inventory cost and 17% more order fulfillment. A 3% increase in forecasting accuracy increases profit margin by 2%.
LTPlabs has a strong experience in improving Forecasting and Demand Planning related activities. We understand these processes as very critical as they should deliver information to all planning upstream. Having this importance in mind, the effort devoted to these activities should be in accordance.
We take a four-step approach to improve Forecasting and Sales in a sustainable fashion. The main goal is to set up the necessary tools (both technical and organizational) to achieve the best forecast accuracies.
- Categorize products by its forecast difficulty and importance. Improve commercial input and raise visibility of Forecasting and Sales.
- Identify the key factors that may influence the accuracy of demand planning (promotions, price-elasticity, outliers), and create the baseline.
- Analyze and improve the current methods, parameters and aggregation steps.
- Change the company’s culture and focus on plan-do-check-act cycles for forecast improvement.