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Forecast value added

Supply chain flashcard on Forecast value added. Forecast value added is a demand forecasting approach heavily advocated by consultants. It aims to improve overall forecast accuracy by collecting manual, multi-departmental overrides to a naive forecast and backtesting to see which tweaks improved or worsened the accuracy. If there is one practice you should adopt, it is tracking FVA with my software! It is key supporting argument in disputes about relevance and value of the S&OP process. Thanks to the FVA and cross-functional collaboration our S&OP team improved accuracy of forecast by 5%! FVA approach is one-eyed by defining value through better forecasts. Focus on better decisions and reducing the dollars of error instead.

Artist: Marina Besfamilnaya

Learn more in the entry Forecast value added of the Lokad knowledgebase.