Forecasting has always been referred to as part art and part science. The art is the human factor.
The human factor will always be part of the forecasting process and will always be art and not science. The science part of forecasting is much more easily defined and much easier to impact. If you are still using Excel or other spreadsheet programs as your main run-rate forecasting tool, you are missing out on optimizing the science part of forecasting.
If you are currently using a spreadsheet as your main forecasting tool, your monthly forecasting process likely looks something like this.
The bottom line is this process may take up to two or more weeks, time in front of customers is lost, and by the time the forecast is presented to the executive staff, operations, or other key stakeholders, the information is out of date. Not a good process at all!
But what is the smarter philosophy? Continue reading.