Gartner Research

Align Forecast Accuracy Lag Times With Supply Chain Action Points to Better Support Decision Making

Published: 16 September 2015

ID: G00279668

Analyst(s): Marko Pukkila

Summary

Many companies struggle with selecting lag times for their forecast accuracy measurement. This research helps supply chain planning leaders decide the appropriate lag times for calculating their forecasting performance in a way that is aligned with the key decision points along the supply chains.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Understand and Communicate the Forecast Lag Time Definition for Your Business
  • Start Measuring Forecast Accuracy With a Fixed Lag Time If No Measurement Is in Place
  • Set the Forecast Measurement Lag Times According to the Supply Chain Planning Time Fences That Are Determined by the Key Lead Time Decision Points (Moments of Truth) for Product Families
  • Measure Forecast Accuracy at the Level of Aggregation That Matches the Supply Chain Actions at That Point in Time
  • Develop a Forecast Accuracy Capability for Analyzing the Demand Forecasting Performance by Planning Horizon

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