If you work in Business or Supply Chain you feel the results and the immense pressure caused by inaccurate forecasts. You don’t believe that good forecasting even exists.
When customer demand exceeds forecast you are scrambling to get parts and materials, to secure capacity, and to expedite the movement of goods throughout the Supply Chain. When demand falls short of forecast you are left with too much inventory, excess capacity, under-utilized resources, and profit and cash flow pressures.
If only the planning people could forecast better all would be right with the world. But waiting for better forecasts is a bad, and a lazy approach.
It is much more important to create a more robust and resilient Supply Chain to dynamically respond to any fluctuations in forecasted demand.
Continue reading “Waiting for Good Forecasting is a Bad Strategy!”