Benefits
- Order forecast allows suppliers to allocate production capacity and inventory against a buyer’s projected demand
- Forecast collaboration reduces uncertainty between trading partners and leads to consolidated supply chain inventories
- Inventory levels are optimized and customer service responsiveness is increased
- Establishes effective platform for continuous process improvement among trading partners
Challenges
- Internal Alignment
- Silo Mentality around Data Extraction and Analysis
- Disjointed Processes and Conflicting Goals
- Lack of awareness across departments
- Overlapping and conflicting priorities
- Deficiency of communication between departments and business units
- Globally distributed teams
- Lack of understanding on decisions made with cross-functional impact