Companies that are just beginning to forecast often discover that one of their key challenges is that some of their products do not respond well to statistical forecasting methods. As a result, these groups must spend inordinate amounts of time and other resources focusing on items that don’t forecast well.

John Galt’s Forecast-ability Analysis allows companies to bypass this obstacle. By conducting a detailed, multi-level analysis of participants’ data, our team separates the forecast-able items from the non-forecast-able ones and determines each item’s value to your business. We will then assign an approach to each item based on its value and forecastability, as seen in the diagram below.

In this approach, products that respond well to statistical forecasts are handled automatically by the forecasting system, and low-value items that do not forecast well are dealt with from a min-max inventory perspective, minimizing the amount of damage that these difficult items can cause. This approach frees up resources so that forecasters can focus on high-value and low-forecastability items.

The result is a comprehensive breakdown of the items that require attention and which do not, allowing organizations to focus their efforts where they will result in the highest profits. Call John Galt at 312-701-9026 to learn more.

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