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How accurate are your forecasts and how accurate do they need to be?

Demand Planning  

A forecast doesn’t have to be correct to have value. In fact, the Institute of Business Forecasting & Planning said, “We need to continually remind people that a forecast is not going to be 100% accurate, and that it does not need to be 100% accurate to be useful. We need to help the sales teams and the leadership see that even inaccurate forecasts can be useful.” Document your work, stand by it, and learn from it. This is not an exact science and that’s alright, just try to continually improve!

Do Forecasts Have To Be Right To Be Valuable?

Yet there is often pressure on both salespeople and demand planners to provide accurate forecasts, especially for revenue and production planning.And by educating our fellow team members how to make the most of “bad” forecasts, we can add significant value to our company’s planning processes.

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