Performance management is a crucial step in the demand planning process. Performance Management helps organizations measure the accuracy of the forecast and the efficacy of the process. Arkieva’s Performance Management provides businesses a diverse variety of accuracy metrics to measure forecast accuracy, forecast bias and forecast process.
Arkieva captures and stores all the forecast inputs independently. This helps evaluate the accuracy and bias of each forecast input uniquely. Arkieva has a variety of accuracy metrics such as: Mean Absolute Percent Error (MAPE), Mean Absolute Deviation (MAD), Volume Weighted MAPE and MinMax to measure accuracy and Tracking Signal and Bias to measure bias. In addition, Arkieva also captures a snapshot of forecast inputs through subsequent cycles of the forecasting process as Lag 1, Lag 2 etc. This helps measure the performance of the forecasting process by measuring Forecast Value Add (FVA) and Time Phased Forecast Value Add (TPFVA).
Since this module is integrated with the attribute based planning infrastructure of Arkieva, the accuracy metrics can be run at any appropriate level of detail as suitable to the business.