Average monthly demand forecast accuracy

This measure calculates your business entity supply chain's average monthly demand forecast accuracy. Forecast accuracy is a measurement comparing the forecasted demand to the actual demand for a specific time period. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process "Manage demand for products and services".

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
107397
Total Sample Size:
1,068 All Companies
Performers:
25th Median 75th
- 85.0% -
Key Performance Indicator:
Yes
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Units for this measure are percent.

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Average monthly supply chain forecast accuracy

Key Terms

There are no key terms associated with this measure.
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Measure Scope

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Cross Industry (8.0)

  • 4.1.2.1 - Develop baseline demand forecasts (10235) - Identify the bedrock levels of market demand anticipated for the organization's products/services. Estimate future demand for product and services using historical data, analysis of the market environment and any externalities, etc. to create ex ante approximations. This includes operation planning.
  • 4.1.2.2 - Collaborate demand with customers (10236) - Working closely with the organization's customers to understand their drives and behavior, with the objective of estimating future demand. Reach out to customers through various means to understand their behavior patterns, usage elasticity, and degree of variability--and ultimately determine demand for each offering.
  • 4.1.2.3 - Develop demand consensus forecast (10237) - Arriving at a consensus over the forecasted levels of demand for products/services. Consensus is achieved by juxtaposing decisions developed in the baseline forecast with those reached at by collaborating with customers. Enlist senior-level decision makers of the sales and marketing functions.
  • 4.1.2.4 - Determine available to promise (10238) - Identify the volume of products/services that may be committed for delivery to fulfill sales. Figure out the amount of stock available. Forecast its volumes.
  • 4.1.2.5 - Monitor activity against demand forecast and revise forecast (10239) - Picking out any activity that deviates from the forecast, and adjusting it. Closely track and study the levels of demand as they emerge. Refine the consensus forecast as needed.
  • 4.1.2.6 - Evaluate and revise demand forecasting approach (10240) - Examining the methodology used to estimate future demand. Refine it in light of current market realities and demand.
  • 4.1.2.7 - Measure demand forecast accuracy (10241) - Calculating and inspecting the accuracy of demand forecasts. Use metrics to check the reliability of the forecasts created.