What level of forecast accuracy is considered best practice or world class?
This question is literally impossible to answer. First, because so much of forecast accuracy is outside the company’s control, as described in the answer to the previous question. Forecast accuracy is measuring how well the sales and marketing people are tracking and anticipating the performance in the marketplace, and sometimes this can be very good, while in other cases, unexpected events can blindside anyone. It is also affected by the number of products and the type of deliveries offered by a given company. If they have quite a few low volume items, statistics tells us that the smaller the number, the harder it will be to forecast accurately, and the greater the percentage error. In our opinion. “Best Practice” for any company is to be constantly measuring forecast accuracy, setting goals for improving it, and continuing to do that month after month, year after year. DP3. Our product managers are focused on their committed forecast to Corporate. How do we get them interested in a m
