Sales Forecasting
|
 |
The Forecasting Process
|
| |
An essential ingredient in any level of the planning
process is sales or demand forecasting. While
generating a statistical forecast is critical,
developing a collaborative process to communicate
the forecast (and adjustments to it) up and down
the organization is equally, if not more important.
PSI Planner is the perfect tool to help accomplish
both of these important tasks.
|
 |
PSI Planner as the Demand
Management "Mechanism" |
| |
All Distribution Requirements Planning (DRP)
systems require an item-location demand forecast
to drive replenishments (except in the case of
"make to order" items). PSI Planner
gives users the option of importing forecasts
from another system, or generating them from historical
data utilizing regression analysis with seasonality
(or the choice of several time series formulas
such as weighted average) and an optional smoothing
factor. The user can make manual adjustments to
the item-location ("SKU") forecast based
upon any current knowledge, and then aggregate
resultant forecasts nationally, regionally or
by other criteria such as product class or market
zone (in units, dollars, weight, etc.). This enables
the user to initiate a dialogue with Marketing,
Sales and Finance with the goal of arriving at
a consensus item-national forecast. The consensus
forecast, if different from the statistical forecast,
can then be prorated back down to the item-location
level and be used to drive deployment and production
planning decisions.
PSI Planner is also the perfect mechanism to capture
any "advance warnings" of incremental
demand communicated by sources such as field sales
regarding new distribution and special promotions.
This information can be entered through an adjustment
to the item-location forecast and documented via
an on-line note for future reference.
|
 |
Other Features |
| |
Other important related features of PSI Planner
are
|
|
Calculation of safety stock
requirements based upon desired Customer Service
levels |
|
|
ABC "Pareto" analysis
(i.e. the 80/20 rule used for inventory management),
which can be performed either nationally or
by location |
|
|
Forecast Variance Reporting
system to measure forecasted versus actual
demand |
PSI Planner makes the demand planning process flow
smoother through easy data import and export capabilities
(in addition to a variety of standard reports and
graphs). |
| |
|
 |