Why Accurate Forecasts?
Striking a Balance for Profitable Growth
The pursuit of accurate forecasts is key to achieving corporate strategy and business goals. Ensuring customer service and on-shelf availability while maintaining margins is a constant state of balance between over-forecasting and under-forecasting. The formula for profitable growth is more than just the right product at the right place at the right time, but also at the right cost.
To avoid potential repercussions of under-forecasting, many companies build and hold excess inventory as insurance, but this comes at a cost. This cost has come under scrutiny recently as companies under pressure by shareholders, look to free up cash flow and get better return on invested capital. Fluctuating input costs, shifts in customer demands and changing consumer trends increase the risks of over-forecasting, making finding a balance all that more important.
