Executive Summary Sales forecasting is the signal given by individual salespeople to their management and that sales give to the rest of their company. We cover how sales forecasting works typically in companies and their pitfalls. Introduction Sales forecasting is the forecast created by salespeople and sales organizations. It seems cut and dried. However, it…
Executive Summary A statistical forecast is a distinct way of creating a forecast. We cover what it is and why they are called statistical. Introduction What is statistical forecasting is a common question. See our references for this article and related articles at this link. In developed countries, most statistical forecastsare generated by systems. They…
Executive Summary Understanding a what is a forecasting method is critical to understanding statistical forecasting. We cover how to differentiate a forecasting method from a model. Introduction The question of what is a forecasting method is a relatively common question around forecasting. For this article, we will limit our topic of statistical forecasts. See our…
Executive Summary Understanding and measuring forecast error is critical to improving forecast accuracy. Forecast error is far less well understood than most people know. Introduction It is vital to understand forecasting error as it provides the necessary feedback to improve forecast accuracy eventually. However, forecast error measurements are tricky, and in most companies, it tends…
Executive Summary Companies tend to think that forecasting applications manage their forecast error measurement. We cover the issues with relying on forecasting applications for forecast error. Video Introduction on Forecast Error Myth #1: One Can Rely on The Forecast Error Measurement in Forecasting Applications Text Introduction (Skip if You Watched the Video) Companies that purchase forecasting…
Executive Summary In 2019 we were deep into a giant AI bubble, and little published around AI is true. We cover the reasons that AI is so overrated. Video Introduction: Why AI and ML Are So Overrated for Forecasting Text Introduction (Skip if You Watched the Video) In this article, we will cover the primary…
Executive Summary POS information is often proposed to be used to improve forecast accuracy. The evidence does not support that using POS does what vendors and consultants say it does. Introduction to Using POS Data for Forecasting Using POS data is a frequently proposed way to improve forecast accuracy. Software vendors that do demand sensing…
Executive Summary Machine Learning is a significant area of interest currently, and proponents of machine learning are proposing pulling investments from univariate statistical forecasting. There is a competition among vendors to make silly statements around machine learning. Introduction to Machine Learning The term machine learning has been popular for some time now. Machine learning is…
Executive Summary Outliers are easily identified in applications, but the question is how to deal with them. The questions to ask regarding when outliers should be removed. Introduction The question of what an outlier is and what outlier removal is always a topic of keen interest in forecasting projects, which is why having a specific…
Executive Summary Few companies use forecasting functionality in SAP ERP. We cover how this functionality can be used by performing external forecasting analysis. Video Introduction: The Infrequently Used Forecasting in SAP ERP Text Introduction (Skip if You Watched the Video) For anyone focused on advanced planning, the forecasting functionality in ERP is so limited that…