- info@ealconsultancy.com
- Office Hours : 09:00 - 18:00
We can help you design and deliver an exceptional demand forecasting process
Demand forecasting is a critical business requirement to support a range of business functions, including logistics, production and finance. It is only with an agreed and considered forecast that functions can adequately plan capacity, inventory, labour and cash-flow.
When forecasting demand, it is key that all elements that can impact sales are identified, assessed and incorporated. Consequently, demand forecasting is not only a statistical exercise, but also requires cross-functional input from teams including sales, supply chain, finance and production.
Many businesses fail to have a cross-functional forecasting process, and often rely only on statistics. This can lead to a lack of business confidence in the forecast and it is not uncommon to find different departments developing their own isolated forecasts; sales, supply chain, production and finance will often see the future very differently!
How our consultants can help your business take demand forecasting and demand planning to the next level
A good demand forecast can only be the result of a good demand forecasting process. That process needs to be fast and dynamic for all participating functions, and it needs to have cross-functional consensus. The first step needs to be a statistical ‘baseline’ expectation which is then passed through each department for sense-checking and input. Varying additions or constraints may need to be applied, including marketing promotions, production capacities, logistics capacities, supplier issues and inventory constraints.
Depending on client requirements we can take several approaches to developing a demand forecast.