Striking a Balance between Sales and Operations in the Forecasting Process

The key to a most effi cient Supply Chain is forecast, which very much depends on people, process, and technology. This article emphasizes that in order to gain participation from Sales, we need to 1) educate Salespeople so that they understand why forecasting is essential, 2) develop a well-structured forecasting process, 3) clearly defi ne roles and responsibilities, and 4) make access to systems easy to use to facilitate their participation. eD THOMPsOn | Mr. Thompson is Senior Vice President of global services at Logility, a provider of best-ofbreed collaborative supply chain solutions. Previous to Logility, he worked in the areas of IT and Operations for companies such as Sara Lee Direct (now Hanesbrands, Inc.) and Hanes Her Way (for its footwear business). Striking a Balance between Sales and Operations in the Forecasting Process By Ed Thompson Copyright © 2014 Journal of Business Forecasting | All Rights Reserved | Winter 2013-2014 29 need their intelligence to generate a reliable, qualitative statistical forecast. EDUCATING THE SALES ORGANIZATION Ask a Sales person how much inventory they need, and they are likely to ask you how much the warehouse can hold. To build ...