Improving accuracy and robustness of global tactical sales forecasts in a B2B environment: Enhancing sales forecasts using increasingly open and detailed global macro- and micro- economic data.
Forecasting is a central input to the demand planning process in modern supply chains. Over- or under-forecasting can have detrimental effects for the operations throughout the organisations, resulting in over-stocking, loss of liquidity or lost sales.
Such forecasts are often univariate, although in some cases limited additional information, such as promotions or EPOS data, are also used. Nonetheless, these types of inputs do not capture the state of the market. This is of particular relevance to forecasts with long lead times and tactical planning. Therefore, it might be preferable to build demand forecasts using leading indicators, capturing various aspects of the market that a company operates and the general state of the economy. This is of particular relevance to companies that operate in multiple countries, potentially being at different phases.
- Yves Sagaert
- El-Houssaine Aghezzaf
- Sept. 30, 2017, 4 p.m.
- Research group