Forecast Errors Lead to Mistrust in Supply Chain
Cupertino, CA -- (SBWIRE) -- 11/13/2014 -- Lack of collaboration is often the cornerstone of conflicts, blame, and mistrust between a manufacturer and suppliers. 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. The consequences of errors are expensive inefficiencies that can be resolved with lean manufacturing technology. The upcoming issue will explain why building trust in supply chain is essential. 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.
The November 17th issue will discuss why forecast errors require a process review. Comprehensive research about demand forecasting process evaluation was recently conducted. Fifteen Brazilian companies were extensively examined including the critical impacts of forecast errors. The four dimensions of analysis were functional integration, application, system and forecasting errors, and the findings were that only 35% met satisfactory levels. When two-thirds of these participants are at unsatisfactory levels there is a mandatory process review in order.
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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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