Forecast Errors Have a Cost to Supply Chain Industry
Cupertino, CA -- (SBWIRE) -- 11/18/2014 -- A whole host of unpredictable factors can affect the accuracy of the financial planning and analysis (FP&A) team and alter the whole strategy or direction of the company. Forecast Errors, a weekly e-newsletter, shares methods, modes, and tools used in a variety of supply chain industries. The newsletter explores forecast errors as the difference between the actual and predicted value. In the current November 17th issue, Forecast Errors argued that what separates best-in-class companies from those that struggle with accuracy is how they root out (and learn from) forecasting errors.
The issue reported that building trust in supply chain is essential. Lack of collaboration is often the cornerstone of conflicts, blame, and mistrust between a manufacturer and suppliers. These communication breakdowns lead to finger-pointing when forecast errors and disputes arise. The manufacturer contends the supplier did not acknowledge the material purchase orders or ship on-time as promised. The supplier argues that the purchase order was not received or duplicated or rejected or went missing-in-action. Accusations result in ill-will, lost productivity, resentment, poor relationships, and bad customer service.
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Ultriva’s (http://www.ultriva.com) cloud-based platform leverages seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment solution. Ultriva, based in Cupertino, CA, implements a global demand driven manufacturing model by providing full visibility, scheduling, and sequencing of production of customer orders. Ultriva was named one of the Great Supply Chain Projects of 2014 by Supply & Demand Chain Executive magazine and recently named one of 50 Best Supply Chain Blogs of 2014 by SupplyChainOpz. The company’s global footprint is increasing rapidly with implementations in wide variety of industry sectors and enterprises such as Magellan Aerospace, CareFusion, Emerson, Ingersoll Rand, McKesson, Triumph Group, Regal Beloit, Thermo Fisher, and more.
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