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Forecasting Demand Part 3: Achieving the Benefits of Accurate Demand Forecasting.

Achieving the desired benefits of accurately forecasting demand requires that you keep in mind some basics:

  1. Keep the goal of demand management clearly in focus: to predict customer demand accurately every time.
  2. Gain as much depth and insight into forecasting techniques as possible. Find that technique or combination of techniques which are responsive to your needs and are capable of being attuned to a changing environment.
  3. Measure, measure, measure!
  4. Apply what you learn from analysis of sales data, forecast data and of your measurements to improve your business.
  5. Bring your resources in line with what your customer requires.

Forecasting Demand Part 1: Is a Demand Forecast a Sales Target?
Forecasting Demand Part 2: What is Demand Forecasting?

As a small business owner, you may feel that you do not have enough time to dedicate to improving your demand forecasting accuracy by using forecasting tools and methods. You are too busy fighting fires and meeting current demand. Well, ask yourself - how many fires were caused by poor planning, unexpected customer requirements, limited resources to fulfil orders? And how many of these fires could have been avoided if you knew 2 weeks ago what your customer would be wanting today?

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