Cupertino, CA -- (SBWIRE) -- 01/19/2015 -- Forecast Errors newsletter reported that John Wiegand of TerraTrike, a firm which designs and markets recumbent tricycles. The company doubled its sales since 2012, generating between $5 million and $6 million in 2014, which is expected to be a record year for the company. To mitigate supply-side pressures, TerraTrike opened a warehouse near its production facility to better be able to meet customer demand. Kentwood-based TerraTrike learned all too well the pitfalls a business can face when its sales projections fell short of anticipating the actual demand from consumers for its products. CEO Mike Kessenich share that growth spurt brought on new problems for the company with capacity and supply chain issues that have effectively inhibited how fast it can grow.
The company recently acquired 3,000 square feet of warehouse space in Taiwan next to its manufacturing facility to ease its supply-side bottlenecks. Instead of operating hand-to-mouth with each container of product, TerraTrike will cut lead times from four months to the 30 days it takes to ship the products. The company also stretched its inventory forecasting two to three years out to avoid any future component shortages.
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 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.
A forecast error is the difference between the actual and predicted value. The consequences are expensive inefficiencies that can be resolved with lean manufacturing technology.
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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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