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0:00
Hello, my name is Eric Wilson.
I'm the Director of
Thought Leadership
with the Institute of
Business Forecasting.
It's a worldwide
membership organization,
55,000 members worldwide,
about fostering the growth
of business forecasting,
demand planning, S&OP,
and related fields.
Today's topic is the fundamentals
of business forecasting
and demand planning.
0:25
Business forecasting
and demand planning.
Your mission, or the mission
of anybody in this field.
Business forecasting
is a process
of using analytics, data,
insights, and experience
to make predictions and respond
to various business needs.
It's really knowing what is
going to happen in the future,
providing the best
assessment of that demand
and predictions that people can
use in making better decisions.
It usually applies across
the entire organization,
as far as the customer service,
to be able to figure out
how much inventory we need,
to have products at the right
place, at the right time,
to be able to achieve
company goals,
to be able to optimize supply
chains and other problems, as well.
It's able to impact
your revenue,
impact your profitability,
and impact your cash
inside of an organization.
1:29
There's a lot of great benefits
in improving forecast accuracy
and getting it right.
IBF has done a lot of research,
and a 15% improvement
on forecast accuracy
is about a 3% improvement
to the bottom line.
Fifteen percent improvement
on forecast accuracy means
improving inventory and improving
cash by anywhere from 10% to 12%.
A 15% improvement on
forecast accuracy means
a topline growth of 1% to 2%.
You're able to make
better decisions,
but it improves the bottom line
for an organization, as well.
