A practical approach to achieving reliable demand forecasts
You will have read above about the recently published Odette Guidelines for Collaborative Forecasting which provide a methodology to improve the accuracy of demand forecasts. Now Odette Sweden has developed a practical tool which helps to put the recommendations into practice.
A meaningful measurement of demand forecast accuracy can only be achieved if it is sufficiently detailed. A large amount of information must therefore be analysed (e.g., in one case study, it was found that 30 million EDI records had to be analysed to produce a sufficiently useful view).
In order to automate and harmonise the measurement process through the use of standard KPIs, Odette Sweden has developed a Forecast Accuracy Index Analyser tool based on the earlier Odette Forecast Accuracy Measurement recommendation. This new tool is designed to gather better and more neutral information which can then be used to identify and reduce irrelevant fluctuations and inaccuracies in forecast data.
The business intelligence tool Qlikview® was chosen as the basis for the FAI Analyser due to its performance, pricing (one user free of charge), scalability and associated data model. The FAI Analyser is now fully productionised and is already being used by the Swedish auto industry.
- Direct control over the Odette defined KPIs, Forecast Accuracy Index (FAI) and Weighted Tracking Signal (WTS)
- Fast comparison of forecast accuracy for different Partners and/or Plants and/or Items
- Overview of how forecast accuracy has changed over time
- Analysis of the causes of inaccurate forecasts
- Fully dynamic parameters in the KPIs: Lag lengths, Alpha values and Period lengths
- Visualisation of delivery schedules (demands over time in a graphic mode)
- Can be used by both customers (to measure the information they send) and suppliers (to measure the information they receive)
- Export of data and KPI results to Excel
Understanding the application
The FAI Analyser application will be presented at Odette2014 on 19/20 May in Lyon.
More info and where
to get the tool