Review of Forecasting

Household Goods Manufacturer

Background & Brief

The Company had major concerns regarding their inventory both in terms of the level of inventory and the extent to which it was matching future requirements. There was a disconnect between Sales and Supply Chain and this impacted not only on inventory but on customer service. Changes were required, not only to the process but also to the organisation, to develop the use of ‘one set of numbers’ to run the business. Buy-in from all staff was crucial. The objective was the achievement of a process with top-down guidance and bottom-up communication that would be visible to all, with clear roles and responsibilities but with teamwork and cross-functional alignment.

Project Approach

  • One-to-one discussions with all relevant staff to ensure understanding of overall operation. Determination of constraints, issues – what works well, what doesn’t - from everyone’s perspective
  • Work though all processes and systems with relevant staff. Produce comprehensive mapping of all relevant processes and systems connectivity. Produce an assessment of Supply Chain performance including review of AGR Dynamics Forecasting System
  • Design of new work processes to achieve improved visibility across the business of new listings, promotions, lost listings, customer sales etc; Departmental connectivity; Increased accuracy of forecast; improved OTIF and reduced inventory
  • Gain buy-in from all Departments
  • Benefits & Results

  • All Departments brought together for sharing of challenges. Team culture instigated
  • Emphasis on impact of promotions, store openings, store closures, new products, end of lines and trend variances
  • Monthly meeting instigated to consider significant variances between forecast and actual, with formal agenda item to agree learnings to prevent repetitions
  • Final Outcome

    Enhanced team working, more regular and insightful reviews of forecasts, stronger qualitative information into forecasts
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