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2020 Requires Big Wings and Feet

Supply Chain Shaman

The budget is not sufficient and is often a detrimental input for supply chain forecasting. Why Is the Financial Forecast Not a Good Proxy for a Supply Chain Forecast? There are many reasons why the budget cannot be used as a supply chain forecast. The supply chain forecast is a rolling forecast.

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Will the Downturn Signal an Upturn?

Supply Chain Shaman

As the markets plummet, it is time to remind ourselves that demand is not a forecast. Traditional forecasting approaches are not adequate in a time of market volatility. In the real world, companies operate with a Mean Absolute Forecast Error of 24-60%, and have a bias of 9-40%. I remember December 2007 like yesterday.

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Winning strategies for distributors and manufacturers during an economic downturn

EazyStock

Rapid cost increases, interest rate hikes and reduced demand require more effective inventory management and forecasting attention. What the last recession taught us An article from McKinsey & Company (2022) analyzed the performance of about 40 publicly traded distribution companies during the 2007-2009 recession.

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My Take: E2open Buys Terra Technology

Supply Chain Shaman

The initial software product release name was Real-Time Forecasting. DS replaced rules-based forecast consumption with better math (statistics and pattern recognition). In 2007-2014 Terra added inventory management, multi-tier demand sensing, transportation forecasting, and long-term forecasting.

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Is A Customer-Centric Strategy the Same as Demand-Driven? Outside-In?

Supply Chain Shaman

A Demand-Driven Value Network as defined by AMR Research in 2007: A network that senses demand with minimal latency to drive a near real-time response to shape and translate demand. It is about much, much more than Vendor Managed Inventory (VMI ) or Collaborative Forecasting and Replenishment. Market-Driven Processes. Demand Sensing.

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Supply Chain Leadership Driving Industry 4.0 & Resilience During Crisis – LogiSYM July 2020

The Logistics & Supply Chain Management Society

Time to products restocking, automating repeat purchases could be made simpler by enabling a customer inventory demand to forecast while big data analytics enable real-time focus and simultaneous analysis of diverse data streams generating valuable information for forecasting and planning. billion (based on 2018 sales). Olhager, J.,

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Building Outside-In Processes

Supply Chain Shaman

2) Market-Driven Forecasting. Inside-out, traditional processes forecasting processes use statistical methods to predict the future based on order and shipment patterns. So, what are the market signals to model to forecast demand at the cadence of the market? How can you build market-driven forecasting processes?