Forecasting demand and safety stock can prevent delays, disruptions and overstock situations. However, a recent survey of 180 top retail, manufacturing and wholesale/distribution companies concluded that less than 30% of these companies surveyed do not have a process in place.
Planning Improves Processes, Lowers Costs
Now more than ever, top management should recognize the importance of forecasting and have a formal Sales and Operations Planning Process. Need some help? An article recently published in the Journal of Business Forecasting talks about the Politics of Forecasting and how to get buy in from upper management.
"The Politics of Forecasting In Sales And Operations Planning"
Chris Whisenant
Shaw Industries
“The Key Players of Politics In Corporate America Are The Executive Branch (senior Management), The Legislative Branch (sales And Marketing), And The Judicial Branch (finance) … To Win The Support Of Finance You Must Show Cost, Average Selling Prices And Margins … One-number Forecasting Is The Key To The Success of the S&OP Process.”
Institute of Business Forecasting and Planning/IBF members can download this for free, or non-members pay $10. Click Here to download and search more articles on demand planning, forecasting and Sales and Operations Planning.
No comments:
Post a Comment