Why Forecast Accuracy Often Misleads Planning Teams

In many organizations, the monthly forecast accuracy report shows improvement while the planning system continues to struggle. Inventory still swings unexpectedly and supply teams still expedite orders. How can this happen if we’re hitting our forecast accuracy targets? In this article, I reveal why forecast accuracy is a less-than-perfect KPI for planning teams because, by the time supply teams execute the number, it reflects more than demand alone. I discuss how consumption signals are adjusted for distribution changes, promotions, and commercial expectations before being converted into shipment requirements. I advocate for planning leaders to view accuracy as one metric, not as judgement of planning ...