While forecasting is, by definition, an inexact science, its purpose is to improve the quality of predictions and thereby enable the fine-tuning of the balance between supply and demand. Improved forecast accuracy is essential to minimize inventory holding and obsolescence costs, particularly in forecasting environments where product ranges and configurations are extensive, bills of material complex and raw material and component lead times long.
- SYSPRO provides the inventory management tools to enable you to track and evaluate your forecasts, as well as to identify the possible causes of forecast errors. These tools assist in optimizing your forecasts to produce the best possible outcome with minimum forecast error.
- SYSPRO Inventory Optimization enables the entry of manual forecasts, as well as the automatic generation of forecasts, including those that compute for trends, seasonality and cyclical events. In addition, the module provides a competition forecasting method (also known as focus forecasting or the tournament method) which attempts to select the most suitable forecast algorithm to enable you to compare results to determine which method is the most suitable for any particular item.
- Forecast accuracy depends not only on the regular evaluation of the forecast error, but also on the integrity and nature of the source data. In SYSPRO forecast accuracy is enhanced through the ability to automatically filter and adjust outliers, as well as to manually adjust forecast base data for quantitative and qualitative factors.