Inventory Forecasting Diagnostic

How to Boost Your Forecast Accuracy

“Guaranteed” – If you’re not delighted with the results, get a full refund!

How good is your current forecast?  How good could an it be?  Using your sales history and forecasting data our proprietary analytics software will;

• Determine ABC Pareto analysis in terms of COGs.
• Assess the ‘forecastability’ of your product portfolio
• Classify your products based on the ‘forecastability’ rating of each SKU.
• Test the quality of your existing forecast in terms of accuracy, bias and nervousness
• Model, test and compare the quality of forecasts using of alternate forecasting algorithms.
• Tell you exactly what you need to do to improve your forecasting performance and inventory outcomes.

Typical Benefit: ~ 4% – 5% forecast accuracy improvement.

Who is it for? Supply Chain and Demand Managers who ask themselves “How ‘good’ is our demand forecast?”

What you get? A customised report comparing the quality of your forecast (accuracy, bias and nervousness) to the statistical forecasting results using at least 5 different forecasting algorithms.

How good is your demand forecast? I’m sure we can help you beat it?

In our Forecasting Benchmark analysis, we use your demand history to assess the ‘forecastability’ of your portfolio.

We then simulate statistical forecasting, calculating 12 months of SKU forecasts using at least 5 different forecasting methods. After comparing these results with your own forecast we’ll recommend a forecast benchmark method and accuracy for your business.  Why not talk to us today?

“Guaranteed” – If you’re not delighted with the results, get a full refund!

Forecast Diagnostic: Transform Your Demand Prediction Accuracy

The Hidden Cost of Poor Forecasting

Every percentage point of forecast error translates directly to your bottom line:

• Excess stock costing 25-30% annually in holding costs
• Stockouts leading to lost sales and damaged customer relationships
• Production inefficiencies from constant schedule changes
• Wasted promotional spend due to misaligned inventory

Beyond Basic Forecast Measurement

Most companies track basic forecast accuracy metrics but fail to understand why their forecasts consistently miss the mark. Our Forecast Diagnostic provides a comprehensive examination of your entire forecasting ecosystem to uncover the real drivers of error and bias.

🔎 Statistical Model Assessment

We evaluate your forecasting algorithms and methods against your actual demand patterns:

• Time series analysis appropriateness
• Seasonality factor calibration
• Trend identification methodology
• Outlier handling processes
• Forecast horizon effectiveness

📊 Data Quality & Inputs Review

We examine the foundational elements that feed your forecasts:

• Historical data cleanliness and appropriateness
• Market intelligence integration
• New product introduction forecasting
• Promotion impact quantification
• Channel/customer signal capture

👥 Process & Governance Evaluation

We assess how your organisation develops and manages forecasts:

• Cross-functional collaboration effectiveness
• Forecast bias measurement and accountability
• Exception management processes
• Forecast cycle structure and timing
• Performance measurement framework

Our Unique Diagnostic Methodology

Unlike generic assessments, our approach is tailored to your specific business context:

1. Baseline Assessment
   We analyse 12-24 months of historical forecasts against actual results across multiple dimensions (products, channels, customers, regions) to establish your current performance.
2. Error Pattern Analysis
   Our specialists identify systematic patterns in your forecast errors, revealing the underlying drivers of inaccuracy.
3. Process Observation
   We observe your forecasting cycle in action, from data gathering to executive review, documenting key decision points and information flows.
4. Root Cause Determination
   Through detailed analysis and stakeholder interviews, we pinpoint exactly why forecast errors occur, focusing on people, process, technology, and data factors.
5. Improvement Roadmap
   You receive a prioritised set of recommendations with expected impact quantification and implementation guidance.

“The Forecast Diagnostic revealed that our statistical models were sound, but our process for incorporating market intelligence was broken. After implementing the recommended changes, our forecast accuracy improved by 17 percentage points.”
— Supply Chain Director, FMCG Manufacturer

Typical Client Results

Our clients typically achieve:

• 15-30% improvement in overall forecast accuracy
• Significant reduction in forecast bias
• Enhanced collaboration between Sales, Marketing, and Supply Chain
• More efficient resource utilisation in the planning process
• Clear accountability for forecast performance

Begin Your Journey to Forecasting Excellence

Our Forecast Diagnostic typically requires 2-3 weeks to complete and delivers insights worth many times the investment through improved inventory performance and customer service.