Long-term forecasting not reliable, study shows

Jan. 1, 2008
Detailed forecasting and planning are not necessary over the long-term, and can lead to less accurate results that require more work to obtain them, finds

Detailed forecasting and planning are not necessary over the long-term, and can lead to less accurate results that require more work to obtain them, finds a study by Supply Chain Consultants (SCC).

In its report on the study, Forecast Less and Get Better Results, SCC says that in today's era of lean manufacturing and sales and operations planning (S&OP), the need for “a highly detailed long-term forecast is not necessary. Instead, an aggregate planning tool that only uses detailed analysis for a short-term plan produces more valid results with better indicators of the future.”

The report challenges conventional forecasting and planning wisdom that states that “companies need to project forecasts and plans far into the future at a detailed, highly granular level.” Rather, the Wilmington DE-headquartered supply chain management software and services company says, performing detailed analysis only for short-term planning provides greater results with less work.

The payback includes more well-founded results with projections that offer better indicators of the future, and the ability to more easily focus on big-picture issues, including economic indicators, competitors, market share changes, new product launches, and end-of-life issues.

Sponsored Recommendations

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...

80% Fewer Towable Accidents - 10 Key Strategies

After installing grille guards on all of their Class 8 trucks, a major Midwest fleet reported they had reduced their number of towable accidents by 80% post installation – including...

Proactive Fleet Safety: A Guide to Improved Efficiency and Profitability

Each year, carriers lose around 32.6 billion vehicle hours as a result of weather-related congestion. Discover how to shift from reactive to proactive, improve efficiency, and...

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!