C³: A Successful Formula for Forecasting

C³: A SUCCESSFUL FORMULA FOR FORECASTING By Nolan Wilson Outlines the key ingredients of a successful forecasting process … communication is the foundation for success … if everything fails, use a simple model for forecasting. Whenever you go to an IBF’s tutorial or best practices conference, the one question that you hear in the halls or meeting rooms is: “how do you build a successful forecasting process or a demand plan?” Most everyone agrees that forecasts are wrong, but if we can minimize the variance, we can have a successful forecasting process. In this article, I would like to share with you what I call C³, a successful formula for forecasting. I will take you through each ‘C’ and share some successes and opportunities for a good forecasting process. I will also share with you some practical examples you might come across, as well as some obstacles you might encounter along the way. COMMUNICATION I will start with what I call the most important ‘C’ of the C³ formula, which is communication. Communication is the foundation for success, without which you are destined to fail. Communication in its basic form can be a phone call, an email, or a fax. ...