Better forecasts mean better results
In today’s competitive business world the ability to forecast accurately translates directly into better decision-making and increased profits.
Benefits of GRA’s Forecast Validation & Analysis Service* improves forecast accuracy
* identifies exceptions
* reduces unnecessary costs
* improves resource allocation
* improves working capital and frees-up cash
* improves credibility with management, financiers and shareholders
* is quick, easy and cost effective
= INCREASED ROI
The ChallengeInaccurate forecasts can have the following consequences as they ripple through a business:
• inventory build-up and cash absorption
• unnecessary write-offs or write-downs
• misallocation of resources
• lower customer service levels
• unnecessary distribution costs
• reduced ROI
Given the fundamental importance of forecasts in business planning, inaccuracies ultimately render many management controls useless and reduce bottom line performance – resulting in diminished credibility with management, financiers and shareholders.
The SolutionGRA’s Forecast Validation & Analysis Service validates business forecasts and operational forecasts, improves forecast accuracy and provides powerful, valuable and credible information to support decision-making.
GRA’s Forecast Validation & Analysis Service;
• employs a proven, fact-based statistical engine for forecast generation
• highlights exception areas requiring attention – e.g. over/under-performers
• translates the demand forecast into a supply forecast (COGs) and financial forecast
• identifies opportunities for cash generation and ‘quick wins’
• forecasts top-down (business level) and bottom-up (product level)
• forecasts by channel, family, category, source of supply, product group, SKU, location, customer, etc.
• forecasts in multiple units of measure including selling price, standard cost, units, pack sizes, containers, cubage, weight, currency etc.
• provides a pareto analysis on sales and gross profit/contribution
• distinguishes between, and plans for seasonal/cyclical, trend, sporadic, fast-moving and slow- moving demand patterns
• flags product life cycle changes
• provides for sensitivity and what-if scenario analysis
• assesses current demand variability and forecast accuracy
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One of Australia's largest pharmaceutical companies, Symbion Pharmacy Services, successfully implemented GAINS and achieved the following market-leading results: inventories reduced by 26%, service levels increased while supply chain efficiency improved.