Quick Response Forecasting: A Blueprint for Faster and More Efficient Planning

This column is written to start a dialog of an advanced concept in demand forecasting, which the IBF is calling Quick Response Forecasting (QRF). It is predicated on the premise that in order to take advantage of “predictive” downstream demand signals (such as from social media) that might portend an impending demand spike or other rapid change in demand; today’s forecasting and planning processes are too slow to detect and respond to them. Quick-response supply teams, put in place on an ad hoc basis, would need QRF forecasts to capitalize on revenue opportunities that “predictive” demand signals offer. In the QRF process, monitoring signals on a real-time basis will be needed to alert these teams, as a call to action. Support of Business Continuity Management (BCM) teams put in place for severe hurricanes, as well as other short-cycle time processes are discussed to illustrate some processes that might benefit from QRF.