Why External Data Are Vital to Demand Forecasts

Studies show that 85 percent of a company’s performance is affected by external economic factors. However, as companies make critical decisions on production, raw materials, staffing, marketing, and more, most consider only internal historical data in their forecasting models. Understanding how external factors can impact your business is the key to staying ahead in today’s volatile market. This article discusses how combining external factors with the latest forecasting technologies and techniques can help to identify drivers to improve forecasts.