Forecasts are never right but you can improve your forecast accuracy …
- You can’t improve what you don’t measure
- Aggregate – individual plus or minus swings cancel each other out
- Measure forecast accuracy at the right time fences
- Review forecasts by exception only. If the forecast deviation is within expected limits leave well enough alone
- Tolerance – decide what ‘good’ and ‘bad’ forecast means
- Triangulate – use multiple forecast methods
- Automate and remove the human factor
- Forecast less – less often, less granular
- Demand Forecast Segmentation – Forecast-ability vs. Benefit
- Reduce supply lead time, and you won’t need to forecast (as much)