2016 Forecasting Benchmark Study
Now in its seventh year, E2open's 2016 Forecasting Benchmark Study is an in-depth analysis of demand planning performance and the benefits realized by industry leaders from sensing demand. The study encompassing $250 billion in annual sales from 17 multinational consumer products companies, with shipments of 9 billion cases and 1.6 million item-warehouse combinations.
Download the report to see this year's analysis and findings including item proliferation, planner productivity, forecast accuracy and bias, forecast value-added, extreme error and demand sensing performance.
- Item proliferation in Consumer Products continues to increase but has very little effect on total sales; the number of active items rose by 31% since 2010, outpacing sales growth of 6%
- Not surprisingly, new product introductions, seasonal goods and items in the “long tail” are especially challenging for traditional demand planning.
- Companies that innovate more are better at it, introducing twice as many top-selling items (as a percentage of new items) than companies with lower innovation rates.
- Forecast accuracy rates are essentially unchanged over the past 5 years for companies that have not deployed Demand Sensing technologies, confirming that traditional demand planning systems have reached their limits.
- Demand Sensing technology more than doubles forecast value-added (which measures the impact of demand planning investments) and cuts forecast error by 37%. It was effective at improving performance in all parts of the business, including top sellers, new introductions, seasonal products and items in the tail.
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