16 % of large US grocery retailers still base their distribution center forecasts on historical data on outbound deliveries from these distribution centers. This is akin to driving a car while looking into the rearview mirror.
Accurate forecasting is at the core of increased operational efficiency as it is key to accurately match resources, such as stock and personnel, with demand.
During my almost seven years working with space planning, I’ve faced almost every question there is to ask around the topic. One, however, seems to come up constantly “Can we use forecast data when making the planograms?”
Predicting weather is not easy and rapid changes in weather can cause consumers to suddenly shop or cease to shop for specific products, which can quickly become costly for a retailer.
“What would you consider a good level of forecast accuracy in our business?” is probably the single most frequent question we get from customers, consultants and other business experts alike.
With any new market a retailer has to understand how the supply chain will evolve and differ from their usual operation.
In February 2016, France became the first country in the world to ban supermarkets from throwing away or destroying unsold food.
Over the years almost every single retail initiative has had forecasting and replenishment at its core.
Easter is great, but for retail planners in particular Easter is also one of the most annoying annual events as its date moves every year.
Sometime it can seem as though your suppliers are going out of their way to making buying their stuff unnecessarily difficult.
The challenges of Christmas vary from sector to sector. Here’s the big secret: think of Christmas as a process, not an event.
The basic idea of bullwhip effect is that most supply chains have internal dynamics that enforce demand volatility.
Why thinking about how to make your supply chain planning worse can help you make it much, much better.
Coping with changes in the rate of sale is a must in the current retail environment.
People are fickle, not wholly rational and make different decisions at different times. However, people are predictable in most of their buying decisions.
Everyone looks forward to summer, sunny weather and happy times. Except the poor supply chain professionals, having to cope with massive swings in sales.
How does one create meaningful forecasts for new products when there is no sales history at all?
Demand forecasting for promotions is a major challenge for retailers, not least because of the impact it has on driving sales.
Forecasting future demand successfully is difficult. Find out from our blog what the big retailers listed as their hardest challenges.
Manual forecasting generally produces results whose accuracy is, rather questionable. However it can be of benefit in certain situations.
Quite often forecasting is based on the views of analysts or salespeople. However in general, human beings are not good at forecasting.
The top post-season supply chain management tips to better manage future seasons and forecast demand more accurately.
In practice zero spoilage is rarely the best goal on perishables inventory management.
It is difficult to achieve the best results when the recession eases if you are not using state of the art Supply Chain Optimisation technology.
A demand forecast always contains errors, but the errors diminish with an increasing aggregation level, and when forecasting less far into the future.
Demand forecasting has been discussed quite a lot in supply chain management. There are some indisputable facts of forecasting. Find out what they are.
Does your company do ‘demand forecasting’ or ‘demand planning’? Both are needed in supply chain management, but what are their differences?