The Smart Forecaster
Pursuing best practices in demand planning, forecasting and inventory optimization
What is to blame for having too much of the stuff you don’t need and not enough of the stuff you do need? Demand and supply variability are often blamed. These problems are significant and seems impossible to overcome leaving many organizations to simply accept misallocated stock as a cost of doing business. However, the real problem it isn’t simply late supplier deliveries and unpredictable demand. These are supply chain planning “facts of life” and it’s how your company addresses them that counts. Watch Greg Hartunian’s vlog to hear his thoughts and what you can do about it.
Smart Inventory Planning and Optimization automatically calculates the stocking policy that yields the best return for your business considering holding costs, ordering costs, and stock outs. To see it in action, register below to watch a 12 minute demonstration.
No, not that kind of regime change: Nothing here about cruise missiles and stealth bombers. And no, we’re not talking about the other kind of regime change that hits closer to home: Shuffling the C-Suite at your company. In this blog, we discuss the relevance of regime change on time series data used for demand planning and forecasting.
Generally, the supply chain field has lagged behind finance in terms of the use of statistical models. My university colleagues and I are chipping away at that, but we have a long way to go. Some supply chains are quite technically sophisticated, but many, perhaps more, are essentially managed as much by gut instinct as by the numbers. Is this avoidance of analytics safer than relying on models?
In this blog, we review 9 specific questions you can ask to uncover what’s really happening with the inventory planning and demand forecasting policy at your company. We detail the typical answers provided when a forecasting/inventory planning policy doesn’t really exist, explain how to interpret these answers, and offer some clear advice on what to do about it.