How can you create a flexible demand forecast?

1 Data collection

The first step to create a flexible demand forecast is to collect relevant and reliable data from various sources, such as historical sales, market trends, customer feedback, competitive intelligence, and internal factors. You should use a data management system that can integrate and organize different types of data, such as structured, unstructured, or semi-structured. You should also ensure that your data is accurate, complete, and consistent, and that you have enough data to cover different time periods, segments, and scenarios.

2 Data analysis

The second step to create a flexible demand forecast is to analyze your data using statistical and analytical tools, such as descriptive, predictive, or prescriptive analytics. You should use these tools to identify patterns, trends, correlations, outliers, and anomalies in your data, and to generate insights and hypotheses about your demand drivers, constraints, and opportunities. You should also use these tools to evaluate the accuracy, validity, and reliability of your data, and to identify and resolve any data quality issues.

3 Demand modeling

The third step to create a flexible demand forecast is to model your demand using quantitative and qualitative methods, such as time series, causal, or judgmental methods. You should use these methods to estimate the expected level and variability of your demand for different products, services, channels, regions, and customers, and to account for the impact of various factors, such as seasonality, promotions, events, or disruptions. You should also use these methods to create different scenarios and assumptions for your demand, such as best-case, worst-case, or most-likely scenarios.

4 Demand review

The fourth step to create a flexible demand forecast is to review your demand forecast using feedback and collaboration from various stakeholders, such as sales, marketing, finance, operations, and suppliers. You should use this feedback and collaboration to validate, refine, and align your demand forecast with your business objectives, strategies, and plans. You should also use this feedback and collaboration to monitor, update, and communicate your demand forecast regularly, and to adjust it as needed based on new information, changes, or uncertainties.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?