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How useful is Forecast Accuracy as a Supply Chain KPI?
I know I am stirring a hornet’s nest, as there are strong views on either side. TOC community, in general, seems to be biased against forecasting. Most leading companies, on the other hand, feel strongly about forecasting and the need to improve its accuracy.
What’s your view point? I think we need to debate it. There are no right or wrong answers. Should we discard Forecast Accuracy as a KPI? Should it be contextual? Are there process gaps in the forecasting process itself?
Focusing on Forecast Accuracy as a KPI has a few inherent assumptions, which nudge us to adopt a specific mindset. I will cover it in my post tomorrow.
What are the implications for the sales team? And the supply chain team? Does it nudge us towards the right behaviours or does it work in a counterproductive manner? I will cover these aspects also in my subsequent posts. Since the topic is so nuanced, let me cover it in small parts at a time.
In the meantime, please share your views…