Article Abstract:
Forecasting manager Stefano Orazi of Procter and Gamble in Italy believes that forecasting liquid detergents is difficult compared to other products. Orazi attributes the difficulty of forecasting to unavailability of past data since liquid detergents are new consumer products. Procter and Gamble employs about 8 people responsible in conducting medium to long term forecasts regarding powdered detergents and two types of liquid detergents. Orazi also revealed that the company has a formal forecasting system and normally utilizes three years of data.
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Article Abstract:
The old forecasting system used by Unison Industries Inc, supplier of ignition systems to airlines and government institutions, failed to reduce inventory and enhance customer service. The firm, therefore, undertook efforts to improve their forecasting system. The result is a reliable and effective forecasting system that incorporates the Box-Jenkins model and other methods. The use of the system lessened the firm's inventory forecasting mistakes from 40% to 50%, to 7% to 18%, and raised the quality of customer service from 80% to 90%.
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Article Abstract:
Future changes are prevented from happening when companies decide to "freeze" a forecast. More often than not, the decision to do so will affect all sectors of the business, including marketing, logistics, and finance. Based on the experience of a fictitious character, "unfreezing" forecasts will yield more favorable results. After all, the success of inventory management customer service lies on the utilization of available information and provision of updates.
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