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How to Show Supply Chain Forecast Accuracy for Commercial Buy-in

S&OP  

There are several key ways to get Commercial’s buy-in into the S&OP process, not the least of which is to show sales and demand forecast accuracy as a cause-and-effect relationship. Calculations and formulas are sometimes off-putting to those who are not mathematically inclined. That means sales forecast accuracy metrics can seem complicated, irrelevant and rather uninteresting for commercial functions. The good news, however, is that the interpretation of those complex formulas is actually quite simple straightforward. The key to getting commercial buy-in is to show the impact of forecasts in dollarized amounts.

The Huge Benefit Of Dollarizing Your Forecast Accuracy

Imagine you’re in the middle of the monthly S&OP meeting, and you’ve come to the point on the agenda that says: “review forecast accuracy KPIs”. You can already feel the Salespeople zoning out because they don’t have a clue what you’re about to

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