Forecasts might be choking your business

Yogi Berra once said, “It’s tough to make predictions, especially about the future.”

While there’s no magic formula for forecasting, there are several steps that companies can take to mitigate uncertainty and improve their demand planning capabilities. Knowing these steps is critical in helping companies avoid issues further down the supply chain.

Good Forecasts can be a superpower where the future predicted consumption is grossly different from the ‘Business as usual’ scenario.

However, most of the time, the ‘Business as usual’ scenario needs to be catered to in the most simple way.

In such an environment, resorting to forecasts is the WRONG way to manage your execution.
The RIGHT way instead is to sense the actual demand and react to it.
This can bring a multifold improvement in customer service, prevention of overstock and a 80% reduction in potential lost sale.