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Posts Tagged ‘accurate forecasts’

A fundamental principle in business is the rationalization of resources, today no company can afford to waste money and even less when faced with a situation like this. Companies that react quickly are most likely that you have to stay afloat and survive. When we live in an age of plenty, the rationalization of resources and identifying points of optimization are not the priority. Instead, when faced with a time of “poor” value for money becomes an obligation and a factor of almost subsistence.

So the question is where to make cuts without impacting the results of the company?

A good decision would eliminate the excess, but what the optimal level of resources?

To answer this question would need to anticipate the future, it is evident that this includes features such as forecasting and demand planning becomes more important.

Differentiate what is the forecasting and demand planning. Although the outcome is the result of an assessment whose origin is often a mathematical projection with some adjustments, a demand plan is the result of adding the following adjustments to forecasts of market intelligence different sectors and actors (generally commercial area), in other words, demand planning ensures that the forecast included in the available knowledge on trends and events that can affect the past and future demand.

So, in times of crisis that the benefits of implementing a process of forecasting and demand planning in the company?

Forecasting and demand planning adequate enables companies to control the total cost of the supply chain by streamlining the quantities to buy and produce, and contributes to better planning of distribution to achieve maximum efficiency, helping to raise the inventory levels of service. If these benefits are evident in moments of what might be called “fat cows” in times of “poor” are the desire for a vital need. But note that the forecast is not the only key to success because it is unnecessary to have the most accurate forecasts if not reported promptly to the operating areas for making decisions on how they use the resources available for counting. Then, the speed with which the forecasts are generated and the process of business communication will be key players in achieving the objectives.

One of the main recommendations made by experts on optimization in times of crisis is streamlining the portfolio of products and services. Without good information and an application of reliable projections, it is difficult to make a decision. While important in a business planning process seriously demand structured to maximize investment in line with forecast demand of target markets.