USING DEMAND DRIVERS FOR A COLLABORATIVE FORECASTING SUCCESS

As business-forecasting processes continue to be refined, more emphasis than ever is placed on Collaborative Forecasting. Processes such as Collaborative Planning, Forecasting and Replenishment (CPFR), Vendor Managed Inventory (VMI), and Co-Managed Inventory (CMI) are now becoming a mandate of many...

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Bibliographic Details
Published inThe journal of business forecasting Vol. 23; no. 2; p. 12
Main Authors Sadarangani, Naresh, Gallucci, John A
Format Journal Article
LanguageEnglish
Published Flushing Journal of Business Forecasting 01.07.2004
Subjects
Business forecasts
Collaboration
Customers
Demand
Forecasting
Guidelines
Inventory
New store openings
Planning
Sales forecasting
Sales management
Salespeople
Success
Supply chain management
United States > US
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Summary:As business-forecasting processes continue to be refined, more emphasis than ever is placed on Collaborative Forecasting. Processes such as Collaborative Planning, Forecasting and Replenishment (CPFR), Vendor Managed Inventory (VMI), and Co-Managed Inventory (CMI) are now becoming a mandate of many major retailers. How should the Demand Planning Team effectively analyze all of this data/information? One way is to involve field sales and sales management in the forecasting process. It is critical that sales management understands the benefits of accurate forecasting. Often times, forecaster faces a strong resistance from sales management. Fuji Photo Film has developed a 4-step process to overcome this obstacle: 1. Understand their concerns. 2. Address their concerns. 3. Demonstrate the impact of accurate forecasts. 4. Build rapport. At Fuji Photo Film, the successful implementation of this process has cut down the forecast error at the key account/product level from 43% to 25% (the target level) in just 2 years, resulting in tremendous tangible and non-tangible cost savings.
ISSN:1930-126X