New Horizon Supply Chain Blog

AUGUST 30, 2023

Introduction I was recently in a conversation about forecasting with a client team, and one individual, whose background was not in supply chain, asked what the value of demand forecasting is. The answer may seem obvious to supply chain professionals, but it’s worth taking a step back and thinking about how to answer this.

Forecasting 52

Forecasting Supply and Demand Material Savings Inventory Reduction 52

Supply Chain Shaman

JUNE 29, 2021

Using balance sheet data from 2011 to 2019, we chart companies’ progress by peer group on rate of improvement and performance in the metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). Let me share some and see what you think: Does forecast ownership make a difference in outcomes?

Supply Chain Planning Software 370

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Design 370

New Horizon Supply Chain Blog

JULY 15, 2022

I was recently in a conversation about forecasting with a client team, and one individual, whose background was not in supply chain, asked what the value of demand forecasting is. The answer may seem obvious to supply chain professionals, but it’s worth taking a step back and thinking about how to answer this.

Forecasting 52

Forecasting Supply and Demand Material Savings Inventory Reduction 52

Supply Chain Shaman

DECEMBER 28, 2020

The SAS forecasting system implemented in 2019 was not tested for model accuracy. An example for this client would be to use 2017 and 2018 history to forecast 2019. So, I asked the questions, “Is your data forecastable? Data at this level of variability is complicated to forecast.) The reason? The answer?

Supply Chain Planning Software 415

Supply Chain Planning Software Forecasting Forecasting Software Modeling 415

E2open

AUGUST 10, 2018

Demand forecasts underpin essentially every major business decision, but discussions about forecast accuracy rarely get visibility outside of supply chain organizations, let alone at the board level. In this white paper, learn why forecast accuracy matters and how it drives key financial metrics.

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Forecasting How To Metrics Supply and Demand 60

Unleashed

APRIL 9, 2024

To measure how effective a company is at delivering complete orders on time, you can use the aptly named On Time in Full (OTIF) metric. This article explains what it is, how to measure and improve it, and how to improve your OTIF rate. OTIF vs OTD On Time Delivery (OTD) and OTIF are both order fulfilment metrics.

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Vendor Strategies Inventory Reduction Waste Reduction Cost Reduction Strategies 52

ThroughPut

OCTOBER 7, 2022

Step Up Demand Planning Efforts with a Robust Forecasting Model . Demand forecasting can be a game changer in today’s volatile environment. Infact, according to McKinsey , applying AI-driven demand forecasting to supply chain management can cut down errors by 20-50% and this helps reduce lost sales by 65%.

Forecasting 52

Forecasting Modeling Supply and Demand Forecasting Software 52

Supply Chain Opz

AUGUST 2, 2017

And no function is more at the forefront of that endeavor than demand forecasting. In order to do that, forward planning is key, and accurate forecasts are a critical input. Given that demand can change every day, forecasting becomes the ultimate adventure. Agility and responsiveness, aligned with cost effectiveness, is the aim.

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Forecasting Supply and Demand Forecasting Software Supply Chain Planning Software 100

Logility

AUGUST 7, 2017

Often, it becomes necessary to reevaluate how supply chain performance is measured to ensure healthy operations. Ask yourself, “Are your supply chain metrics bogging you down?” However, companies often have too many independent metrics that can cause conflicts amongst competing supply chain functions.

Procurement Analytics 121

Procurement Analytics Metrics Gartner Supply Chain Planning Software 121

Arkieva

MAY 12, 2021

A reoccurring challenge in comparing and combining diverse time series in demand forecasting is the “scale” – as it is in combining metrics. Tools of the Trade: How to Compare / Combine Diverse Time Series – “Normalizing” was first posted on May 12, 2021 at 8:04 am.

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Forecasting Software Demand Planning Software Supply Chain Software Tools 129

Unleashed

FEBRUARY 12, 2023

To stay on top of your financials, there are a few key cash flow metrics and KPIs you can track that will help you make the right decisions and avoid insolvency or liquidation. Learn more: Inventory Accounting: A Video Guide for Accountants & Advisors What are cash flow metrics? Why is it important to track cash flow metrics?

Procurement Analytics 52

Procurement Analytics Metrics Expense Reduction Inventory Reduction 52

Silvon Software

JUNE 23, 2020

As I mentioned in my previous post, Sales Dashboards – 16 Metrics for Manufacturers , a strategy for measuring business performance should also incorporate metrics that focus on the supply chain and other operational areas of the enterprise. Sales to Forecast and Sales to Outlook. You can refine as you go! Past Due Orders.

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Manufacturing Procurement Metrics Gartner Supply Chain Planning Software 89

Unleashed

DECEMBER 15, 2021

Days Sales of Inventory (DSI) is a key measure to help you understand how efficient your inventory management is. Here explain what DSI is, how to use it, and why it’s crucial to track this metric in your business – whether you’re a retailer, manufacturer, wholesaler or distributor. How do you calculate Average Inventory?

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Procurement Analytics Inventory Reduction Metrics Inventory 98

ThroughPut

JULY 6, 2021

Thriving In ‘The New Normal’ With 5 Demand Planning & Forecasting Methods. Businesses around the world are pondering upon these questions and each of them leads to a simple answer – effective supply chain demand planning and forecasting. Most manufacturers prefer to leverage analytics data over traditional forecasting methods.

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Arkieva

FEBRUARY 13, 2017

How do you establish a forecast improvement process? The forecasting process in demand planning sets the stage for all other planning activities including bill of material (BOM) and finished goods inventory optimization. Related: How to Define Your Forecasting Hierarchy ]. Forecast error. Forecast BIAS.

Forecasting 60

Forecasting Forecasting Software Inventory Reduction Scenario Planning 60

Silvon Software

JANUARY 25, 2023

Working together to incorporate all this information into the sales forecast and demand plan can ensure that everyone is prepared for demand fluctuations. At a minimum, sales should start with a statistical base forecast and historical data provided by the demand manager and make incremental changes each month.

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Supply and Demand Demand Planning Supply Chain Planning Software Demand Planning Software 115

BlueYonder

JANUARY 24, 2022

This blog post on forecast evaluation discusses common pitfalls and challenges that arise when evaluating probabilistic forecasts. Our aim is to equip Blue Yonder’s customers and anyone else interested with the knowledge required to setup and interpret evaluation metrics for reliably judging forecast quality.

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Forecasting Forecasting Software Predictive Analytics Software Groups 73

Unleashed

APRIL 18, 2023

The last of these can be achieved by tracking the right inventory metrics, analysing the results, and making data-driven optimisations. So, what are the ‘right’ inventory metrics, and how do you calculate them? In this inventory metrics guide What are inventory metrics? What are KPIs for inventory?

Procurement Analytics 52

Procurement Analytics Metrics Inventory Reduction Inventory 52

ToolsGroup

JUNE 8, 2021

For example, an SOP may define how forecasting is done in the organization; therefore, the RFI focuses on features that enable that approach. There may be a better way to approach forecasting, but it’s not captured in the RFI because no one has any experience with it. #6 6 Focus on the wrong metric.

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Supply Chain Planning Software Forecasting Software Supply Chain Software Optimization Software 245

Talking Logistics

SEPTEMBER 12, 2017

The four key methods here will help you drive more success as you bring the metrics to life on your warehouse floor: 1. How to make it happen in your company: Infuse engagement and excitement into your team by reinforcing a bigger goal and more long-term growth conversations. As a leader, you need many tools to eliminate this mindset.

Metrics 106

Metrics Supply Chain Planning Software Supply Chain Software Supply Chain Planning 106

QAD

NOVEMBER 8, 2022

Implementing digital demand planning and forecasting solutions. End-to-end transparency relates to internal and external data sources to identify leading lagging metrics in such areas as data security, operations, organizational maturity and compliance. Implementing Digital Demand Planning and Forecasting Solutions.

Optimal Sourcing 95

Optimal Sourcing Supply Chain Optimization Sourcing Strategies Price Mitigation Strategies 95

ToolsGroup

FEBRUARY 6, 2018

Financial executives measure inventory health with metrics like inventory turns because they view the firm from a financial viewpoint - such as how much working capital is being tied up. The IQR metric is a percentage of active inventory in the total stock. Without a clear goal, it feels like it is never right.”.

Inventory Reduction 159

Inventory Reduction Inventory Material Savings Gartner 159

QAD

AUGUST 29, 2023

The digital supply chain forecasting process is critical for any organization’s success. However, to achieve an accurate and effective digital supply chain forecasting process, it is essential to collaborate with both sales teams and suppliers. Collaboration is key to successful digital supply chain forecasting.

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Supply Chain Planning Software Supply Chain Software Forecasting Software Forecasting 93

Logility

MARCH 12, 2021

Better forecasting and demand planning processes, which in the past had been beset by low accuracy and poor adoption, were a priority. Data were inconsistent across groups, and despite endless graphs and tables, no one was clear on how to improve business using the information. Sure, forecasting is the mainstay of demand planning.

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Supply and Demand Prescriptive Analytics Software Demand Planning Modeling 191

ShipBob

DECEMBER 13, 2023

By the end of this article, you’ll gain insights into which inventory health indicators you should be monitoring, how to overcome common inventory management hurdles, and see how a third-party logistics provider like ShipBob can help. These metrics provide valuable insights into how well your inventory is managed.

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Optimal Sourcing Optimization Software Inventory Reduction Inventory Management Software 52

ThroughPut

MARCH 15, 2024

Are you losing sales opportunities to poor forecasting? For example, a mislabeled product category can lead to a 10% inefficiency in demand forecasting. Step 3: Metric Selection Not everything can be improved or enhanced at the same time with AI. Are you losing money to inventory mismanagement? Or did it improve margins by 7%?

Supply Chain Planning Software 52

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Modeling 52

ThroughPut

MARCH 15, 2024

Are you losing sales opportunities to poor forecasting? For example, a mislabeled product category can lead to a 10% inefficiency in demand forecasting. Step 3: Metric Selection Not everything can be improved or enhanced at the same time with AI. Are you losing money to inventory mismanagement? Or did it improve margins by 7%?

Supply Chain Planning Software 52

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Modeling 52

ThroughPut

APRIL 30, 2024

That’s why we put together this guide – to help you get a glimpse of the best AI tools for supply chain and logistics, how to implement these tools, what to take care of and more. The platform is designed to enhance inventory management and provide accurate demand planning and forecasting, crucial for optimizing supply chain efficiency.

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Supply Chain Planning Software Supply Chain Design Software Supply Chain Software Logistics Network Optimization Software 52

Alloy

DECEMBER 27, 2018

Consumer goods companies rely on forecasts to support inventory planning and distribution across their sales channels. Building accurate demand forecasts requires more than just an understanding of the latest machine learning techniques; it also requires the right data and an understanding of the potential costs of incorrect estimates.

Forecasting 40

Forecasting Modeling Forecasting Software Demand Planning Software 40

Silvon Software

APRIL 18, 2023

While clearly important in today’s constantly changing business environment, so many companies continue to struggle with how to measure and improve their performance – grappling with questions like: Which metrics really matter? How do we get buy-in around the organization? Each requires its own portfolio of metrics.

Inventory Reduction 64

Inventory Reduction Sourcing Strategies Resource Reduction Material Savings 64

QAD

JULY 1, 2021

Knowing how to calculate total manufacturing costs is incredibly important supply chain data. Finally, you need to know how to calculate total manufacturing overhead. Better forecasting can drastically cut costs. Improving communication between departments and comparing metrics across them. What is Manufacturing Overhead?

Manufacturing Procurement 88

Manufacturing Procurement Procurement Analytics Cost Reduction Strategies Purchasing Skills 88

Precoro

NOVEMBER 13, 2023

One of the ways that procurement teams improve this figure is by tracking and improving the purchase price variance (PPV) metric. In this article, we'll explain what PPV is, why it matters, and how tracking this metric can benefit your procurement processes. It can also highlight the future financial risks for the business.

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Purchasing Skills Procurement Analytics Negotiating Skills Negotiate Pricing 98

Kinaxis

FEBRUARY 5, 2015

by Melissa Clow Our partner Celestica recently published the following article, ‘What If You Could Take The Guesswork Out Of Forecast Planning?’. The factors which impact demand management and forecasting are nearly endless. For example, if a planning process needs to determine “how many widgets do we need?,” Let’s find out.

Forecasting 100

Forecasting Supply Chain Planning Software Forecasting Software Scenario Planning 100

ThroughPut

SEPTEMBER 10, 2021

Data procured through real-time metrics can drive up sales , bring down wastages and lead to a robust supply chain. When material flow metrics are updated instantaneously, these updates help cut down on thousands of defective and unnecessary units being produced. Demand Forecasting.

Optimal Sourcing 52

Optimal Sourcing Supply Chain Optimization Optimization Software Supply Chain Planning Software 52

SCMDOJO

DECEMBER 14, 2023

In supply chain management, total lead time is a crucial metric encompassing the period from customer order to delivery, be it in B2B or B2C scenarios. Enhanced Forecasting Accuracy: Shorter lead times make it easier to forecast demand accurately. Improved forecasting contributes to better overall supply chain planning.

Inventory Reduction 77

Inventory Reduction Vendor Strategies Waste Reduction Cost Reduction Strategies 77

OptiProERP

APRIL 9, 2024

Use dashboard reporting and analytics tools to track performance metrics in real-time and identify areas for improvement. The Business Intelligence tools in manufacturing ERP analyze data from various sources to generate actionable insights, enabling businesses to identify trends, forecast demand, and optimize pricing strategies.

Optimal Sourcing 52

Optimal Sourcing Manufacturing Procurement Supply Chain Planning Software Inventory Management Software 52

Supply Chain Shaman

FEBRUARY 14, 2022

Tight coupling of the supply chain forecast to the financial forecast will improve value. Organizations can align to drive value despite the allegiance to functional metrics. I am shocked to see how the lack of governance–clarity on who and how to make decisions–derails well-intended processes.

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S&OP Supply and Demand Procurement Analytics Manufacturing Procurement 195