Press Release from Supply Chain Consultants: ” Supply Chain Consultants, designer and supplier of the Zemeter suite of supply chain management (SCM) software products, today announced the release of â€œForecast Less and Get Better Results,â€ co-authored by industry experts, Tom Wallace and Bob Stahl. Findings in the study indicate that detailed forecasting and planning are not necessary over the long-term, and can even lead to less accurate results that require more work to obtain them. The full report is available on Supply Chain Consultantsâ€™ (SCC) web site:”
Tom Wallace, co-author of the report, said, â€œIn todayâ€™s era of Lean Manufacturing and Sales & Operations Planning (S&OP), it has become more apparent that the approach of 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. Additionally, an aggregate approach in executive S&OP requires less work and enables a company to perform valid simulations quickly.â€
The important task of getting products to customers centers around four fundamentals: demand, supply, volume and mix. 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. By performing detailed analysis only for short-term planning, companies can expect three main benefits:
– More valid results, with projections that offer better indicators of the future;
– 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;
– Less work to generate results, a significant factor for a process like executive S&OP that happens on a monthly basis.
â€œThe findings of this report stress that the new method of using an aggregate approach is not only better, but also simpler,â€ said Dominick Corigliano, Supply Chain Consultantsâ€™ vice president of sales and marketing. â€œExecutive S&OP, operating on a volume level and built on valid assumptions, facilitates decision-making, enables simulation and risk assessment, and makes possible a more responsive, proactive way of doing business.â€
About the Authors
Tom Wallace has more than 30 years of experience in the areas of supply chains and manufacturing. He has authored more than ten books, including Sales & Operations Planning: The How-To Handbook, 2nd Edition. Wallace is a Distinguished Fellow at Ohio Stateâ€™s Center for Excellence in Manufacturing Management.
Bob Stahl has spent the last 30 years developing, teaching and helping a number of the worldâ€™s leading corporations implement leading-edge processes for manufacturing, logistics and supply chain management. Wallace and Stahl have co-authored a number of books together, including: Sales & Operations Planning: The How-To Executiveâ€™s Guide, Sales & Operations Planning: The Self-Audit Workbook, Building to Customer Demand, Sales Forecasting: A New Approach, and Master Scheduling in the 21st Century.
About Supply Chain Consultants
Supply Chain Consultants, founded in 1993, is a supply chain management software and services company with headquarters in Wilmington, Del., and European operations located in Antwerp, Belgium. SCCâ€™s Zemeter software and related services help manufacturers better plan demand, manage inventories, plan production and replenishment, and schedule operations. Zemeter enhances productivity and reduces operating costs at a wide variety of companies including Hexion Chemicals, Terra Industries, INEOS, Sunsweet Growers and ANADIGICS. For more information, see www.supplychain.com .
Full report is available from: