In environments where materials and product replenishment planning is largely based on demand forecasts, the forecasts must be as accurate as possible so as to minimize the costs associated with inaccuracies, such as redundant stock and poor customer service.
Forecast accuracy depends not only on the regular evaluation of the forecast error, but also on the integrity and nature of the source data. Within 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. Additionally, reports and queries provide comparisons between actual sales, and suggested, draft and approved forecasts.
- SYSPRO's Forecasting module provides tools to enable you to track and evaluate your forecasts, as well as to identify the possible causes of forecast errors. These tools assist you in optimizing your forecasts to produce the best possible outcome.
- The Forecasting module enables the entry of manual forecasts, as well as the automatic generation of forecasts via a variety of forecast algorithms, 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, based on a selected error measurement and your recent SYSPRO sales history data. This allows you to compare results to determine which method is the most suitable for any particular item, whether you forecast on products at code, revision, release, or warehouse level. A tracking signal is used to indicate when the validity of the forecast might be in doubt; those items with high forecast errors are highlighted and can be reviewed and adjusted as required.