NEHANET Corporation

The 3 Critical Steps to Improving Forecast Accuracy

Improving forecast accuracy was the number one issue identified in my VP of sales survey.  While there are many other aspects of forecasting that are equally as critical, we will focus simply on the accuracy aspect here. Done right, forecast accuracy can be improved by at least 30%. Let me show you how we attacked this problem.

In researching what is required to create an accurate forecast, everything pointed to the forecasting environment being the most critical aspect. There are three critical areas that required optimal conditions to achieve improved accuracy:

  • Accessibility

  • Data entry environment

  • Availability and the ease-of-use of ancillary data sets such as shipments, backlog, uncommitted backlog, annual plans etc.

In this post, we will look at these areas in a little more detail.

The 3 Critical Steps to Improving Forecast Accuracy