Copyright © 2021 Fienics
Situation:
A client's sales were 40% below the company's internal sales forecast. He needed to explain the situation to senior management in a few days!
Analysis:
We quickly reviewed the internal forecasting model and actual use of the product. We found that the forecasting model was based upon shipments to wholesalers, not on actual customer purchases. A price increase had caused wholesalers to stock up just before the forecast was made, resulting in the forecast being 40% higher than it should have been.
Implications:
The client was able to explain to senior management that the problem was the forecast, not the actual sales. We all worked together to improve future forecasting models.
Better Information Faster
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