Tag: Metrics

S&OP and IBP

Optimizing The Order To Cash Process – What Is Your Priority?

Dr. Chockalingam

When companies take a hard look at their business model and the underlying process, what is the key objective that is motivating them?

1. Return on Investment

2. Increasing Sales

3. Cost Reduction

Although all of the above are good objectives that lead to healthier businesses, companies are also driven by the latest buzz words – the latest consulting mantra, industry trend, and a flashy new technology from a sexy software company.

Optimizing the basic Order to Cash process will yield the cliched low-hanging fruits and result in a more compacted Cash-to-Cash cycle.

Forecasting SCM - Supply Chain Collaboration

Forecast Error Benchmarking Across Various Industry – Survey Results

Rohan Asardohkar

we started conducting the survey across supply chain and demand planning professionals from various industries. This survey was meant to compile information about their pain points, forecast error metrics they use, industry they work for, and who owns the demand planning function. We are publishing the first installment of the results from this survey in this newsletter.

As expected one of the metrics used by 52% of the respondents is WMAPE or volume weighted MAPE, calculated as Sum of Absolute errors divided by sum of actual demand.