To place the appropriate focus on the forecasting of products, based on their strategic importance to the business and a measure of forecastability, the recommended best practice is to use a Differentiated Forecast Strategy (DFS)

The Differentiated Forecast Strategy provides a framework that balances the use of statistics and sales input in a way that ensures the focus is placed on choosing the appropriate forecasting technique based on the predictability of their forecast. Implementation of the DFS in the planning system utilizes a combination of statistics, sales input, and naïve forecasts.

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