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Most Companies Require Process Review to Avoid Critical Impact of Forecast Errors

Most Companies Require Process Review to Avoid Critical Impact of Forecast Errors


Cupertino, CA -- (SBWIRE) -- 11/20/2014 -- Comprehensive research about forecasting process evaluation was reported in Forecast Errors, a weekly e-newsletter, shares methods, modes, and tools used in a variety of supply chain industries. The newsletter explored forecast errors as the difference between the actual and predicted value. In the current November 17th issue, Forecast Errors examined 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.

The current issue explored how to manage unpredictable supply chain disruptions. The newsletter suggested that leaders using traditional risk-management techniques and simple heuristics (dollar amount spent at a site, for instance) often end up focusing exclusively on the so-called strategic suppliers for whom expenditures are very high and whose parts are deemed crucial to product differentiation, and overlooking the risks associated with low-cost, commodity suppliers. As a result, managers take the wrong actions, waste resources, and leave the organization exposed to hidden risk. In this article, we describe our model and how companies can use it to identify, manage, and reduce their exposure to supply chain risks.

To subscribe to Forecast Errors, go to: http://info.ultriva.com/newsletter

About Ultriva
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.

Follow Ultriva on Twitter at @Ultriva

Ultriva, Inc.
Cynthia Leonard
Marketing Executive