Beyond Forecast Accuracy: Why Forecasting Needs an Enterprise Level System, Not Just Better Metrics

Forecast accuracy is an important metric in demand planning and while error metrics like Mean Absolute Percent Error (MAPE) have value, they are not enough. In this article I discuss how the same MAPE can tell very different stories about demand and have very different implications for the performance of a business depending on the industry and product type. I make the case that forecasts should be measured on bias and stability, and aim to meet the needs of the business rather than treating accuracy ...