Metrics that Matter: Inventory Effectiveness

QAD

It is critical to monitor inventory effectiveness using five key metrics: Expedited orders, inventory turns, obsolete inventory, safety stock and stockouts. Using Metrics to Measure the Health of the Business. The absolute measure is less informative than the trend in the metrics.

Metrics that Matter: Customer Service

QAD

Inventory accuracy and minimizing stockouts are very important to customer satisfaction, but a few other metrics also impact the ability to meet customer expectations. Forecast Accuracy. This is defined as the ratio of forecast to actual demand in a period. Forecast Accuracy.

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Modern Metrics

synchrono

We use these technologies to track levels of contact engagement and conversion ratios to develop more predictable buying cycle patterns and pipeline forecasts. Combat data overload by knowing what you want to achieve and focusing on metrics that align with those goals.

Time for a Supply Chain Metrics Cleaning

Logility

Ask yourself, “Are your supply chain metrics bogging you down?” ” To manage a supply chain containing complex dependencies between teams, departments and partner companies across international boundaries requires a rich set of metrics. However, companies often have too many independent metrics that can cause conflicts amongst competing supply chain functions. Functionally isolated metrics lead to sub-optimized supply chain performance.

What’s Your Forecast Accuracy Target for 2017?

ToolsGroup

In 2016, it seemed as if everyone in supply chain was looking to improve their forecasting performance. How much can you realistically expect to improve your forecast accuracy each year? Forecasting Demand and Analytics

Omnichannel Supply Chain Metrics: What Should Supply Chain Leaders Measure?

Cerasis

The answer lies using these omnichannel supply chain metrics to carefully track and improve operations continuously. This is a simple key performance indicator (KPI), another name for metrics, to track. The Fill Rate is a complex metric that considers the average window of delivery, percent of on-time delivery and accuracy of delivery for all products coming into your warehouse from vendors. Forecasting Accuracy KPIs.

What’s Your Forecast Accuracy Target for 2019?

ToolsGroup

Editor’s Note: Two years ago we posted a blog about how to set an annual forecast accuracy target and it was one of our most popular topics. Many companies have already started their 2019 planning and budgeting cycles, so if you are in charge of demand forecasting for your company, it’s about time to thinking about your organization's 2019 goals. It seems as if everyone is looking to improve their forecasting performance. Forecasting Demand and Analytics

Building a Business Case for Improved Demand Forecasting

ToolsGroup

I’ve always maintained that improving demand forecast accuracy, as helpful as it can be, shouldn’t be the end goal itself, but simply a means to the end. Gartner says that you shouldn’t just pitch forecast accuracy to your executive management, but translate your plan into business metrics.

Forecasting and Demand Planning for a Better, Unified Future

Logility

Year after year, survey after survey, forecast accuracy continues to be one of the top metrics for measuring supply chain performance. That is very powerful; one forecast to drive the business forward. “. Watch: When Planning for Forecast Accuracy, Visibility is in Demand.).

Overcoming Complacency: How to Drive Even More Supply Chain Metric Success

Talking Logistics

The four key methods here will help you drive more success as you bring the metrics to life on your warehouse floor: 1. Show the “story” of your metrics with quarterly and yearly growth charts; show how far you’ve come as a team over time. While most metrics stop at the output level, multiple layers of metrics in a Hoshin Plan actually determine if you’re even focusing on the right targets. A sense of complacency can lurk behind benchmarks.

Why You Should Embrace Uncertainty in Demand Forecasting – Part 2

ToolsGroup

Here is one straightforward opportunity to focus on in the near future: Migrate away from top-down demand forecasting. When it comes to long-tail items, forecasting metrics such as WMAPE become almost meaningless or even misleading.

5 Considerations When Evaluating your ERP system’s Forecasting Capabilities

The Smart Software

Consider what is meant by “demand management”, “demand planning”, and “forecasting”. The post 5 Considerations When Evaluating your ERP system’s Forecasting Capabilities appeared first on Smart Software. These terms imply certain standard functionality for collaboration, statistical analysis, and reporting to support a professional demand planning process.

Summoning the Courage to Redefine Forecasting: Upending the Apple Cart

Supply Chain Shaman

And, even if we can afford the costs, we don’t get good answers with our current forecasting processes,” stated the supply chain leader on the phone. Inherently, business leaders know that traditional forecasting processes are inadequate. Cognitive computing/machine learning can redefine decision support/forecasting processes. With the focus on growth, new product launch and forecasting special items increases in importance.

Here’s What’s Wrong with Demand Forecasting

ToolsGroup

Since there will be a week off between posts, we wanted to forgo the fluff in most year-end blogs and leave you with a deep philosophical thought to ponder while on your holiday break, and it’s this: Maybe you are doing your demand forecasting completely wrong. Consider a weather forecast.

The Forecasting Conundrum

Logility

I have heard a number of supply chain professionals proclaim that their companies should stop forecasting product demand due to poor forecast accuracy. However, what is often overlooked is that moving to a pull strategy does not eliminate the need for a forecast.

DIFOT: A Metric of Supplier Performance

Unleashed

Delivery In Full On Time, or DIFOT, is a metric used to analyse how accurate and efficient your supply chain is. When it comes time to reassess the approved supplier list, then you can use these metrics to disqualify problematic suppliers and improve your own performance and supply chain. If you are measuring your own DIFOT scores as a distributor, you can use the metrics to promote your own success and ability to fulfil demand.

Riding the Tradeoff Curve

The Smart Software

In the supply chain planning world, the most fundamental decision is how to balance item availability against the cost of maintaining that availability (service levels and fill rates).

Adventures in Forecasting in the Supply Chain

Supply Chain Opz

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.

FORECAST DRIVEN INVENTORY MANAGEMENT

The Smart Software

The post FORECAST DRIVEN INVENTORY MANAGEMENT appeared first on Smart Software. Ensure inventory policy matches business strategy. Various team members can create their own scenarios, perhaps dividing the work by product line or sales territory.

The Right Forecast Accuracy Metric for Inventory Planning

The Smart Software

Traditional forecasting accuracy metrics aren't applicable when the goal is to optimize inventory. This blog explains why and details how to calculate the metric. The post The Right Forecast Accuracy Metric for Inventory Planning appeared first on Smart Software.

Top 10 Demand Planning Metrics You Should Have on Your Dashboard [Infographic]

Arkieva

To stay ahead of the curve, effective demand planners must track the right metrics that can help curtail possible demand planning issues ahead of time. Top 10 Demand Planning Metrics You Should Have on Your Dashboard [Infographic] was first posted on January 29, 2019 at 2:07 pm. ©2017 ©2017 " Supply Chain Link Blog - Arkieva " Use of this feed is for personal non-commercial use only.

Demand Forecasting Mistakes in the Retail Industry

Alloy

Consumer goods companies rely on forecasts to support inventory planning and distribution across their sales channels. Below, we’ll explore two of the top forecasting errors consumer brands commit, along with suggestions for how to avoid these pitfalls.

Quantum Inventory Theory?

The Smart Software

Blog Demand Planning Inventory Optimization Operational Analytics demand planning implementations efficient stocking ERP forecasting software inventory modeling inventory optimization kpi metrics overstock probabilistic modeling statistical forecasting supply chain analytics

Forecast Accuracy: Why It Matters and How to Improve It

E2open

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.

The DDAE Model – Metrics, Ranges and Next Steps

DynaSys

Prerequisite #3: Flow-Based Metrics. The DDAE model uses different metric emphases within each of the operational, tactical and strategic relevant ranges to promote and protect flow today and into the future. In each case there is a metric objective and a message behind the metric.

Stop Leaking Money with Manual Inventory Controls

The Smart Software

Blog Business Policy Demand Planning Excellence in Forecasting Inventory Optimization Operational Analytics demand planning implementations ERP inventory modeling inventory optimization kpi metrics probabilistic modeling statistical forecasting supply chain analytics

A Zen Master’s Guide to a Good Forecasting System

Halo

Five Koan of A Good Forecasting System. Having a hard time figuring out how to use forecasting when the results never seem good enough? For many of us, forecasting seems like either too much work, or too complicated to get right. With deep apologies to philosophers and history, here are five Koan that may help you in your quest to improve your forecasting. Amid this change, a good sales forecasting model won’t last. Forecastability’, not accuracy.

A Zen Master’s Guide to a Good Forecasting System

Logility

Having a hard time figuring out how to use forecasting when the results never seem good enough? For many of us, forecasting seems like either too much work, or too complicated to get right. Amid this change, a good sales forecasting model won’t last.

The Top Five Benefits of Using Machine Learning for Demand Forecasting

Halo

Machine Learning has matured to a level of accuracy, transparency, and replicability that translates into transformative forecasting results. Stakeholders who care about forecasting in demand planning care about accuracy, and usually will not accept a new forecasting method unless it is rigorously validated against known forecasting benchmarks with proven accuracy. HaloBoost © ingests this information, quickly building highly accurate and highly granular forecasts.

Guest Post: Ignoring this Performance Metric is Risky

TMC

There is growing interest in incorporating weather forecast data from a variety of sources into supply chain planning. The post Guest Post: Ignoring this Performance Metric is Risky appeared first on Connect Blog by TMC, a division of C.H.

Demand Planning – We Must Grow our own Garden

DynaSys

Some might argue that gardening is far from the usual supply chain topics highlighted in this blog, and that I should focus more on the forecasting challenges every company faces. The key to a successful growth strategy is communicating these elements to the forecast team.

Supply Chain Metrics: Make Sure They Are Aligned with Your Strategy!

Supply Chain View from the Field

Many people are talking about Key Performance Indicators, Metrics, Analytics, and other indicators of performance. The importance of selecting the right metrics or “measures” as I prefer to call them, is critical as we all know that metrics drive behaviors. Rather then selecting a plethora of meaningless metrics, it is always better to focus on a critical few, and select them wisely. Step 2 – Develop Metrics and Data Sources.

POST FACTS

The Smart Software

FunFacts analytics demand forecast demand planning forecasting inventory modeling inventory optimization investment kpi metrics overstock overstocking probabilistic modeling savings software statistical forecasting stockouts supply chain understock

The Forecast isn’t the Forecast, Until it’s YOUR Forecast!

Blue Ridge

Wouldn’t it be nice to have a 100% accurate forecast? The ultimate goal of demand forecasting is to accurately predict what will happen at a defined time in the future. For many of you, your only evaluations of accuracy are: Your forecast accuracy (or error) metric.

Benefit from Forecast Data in your Planograms

RELEX Solutions

One, however, seems to come up constantly “Can we use forecast data when making the planograms?”. The answer used to always be the same; “If you give us the forecast data at the weekly product-location level, then yes”. How to find a way to combine forecast and historical data?