Industries / DEFENSE & AEROSPACE

Demand Forecasting for Defense and Aerospace

Gain a single view of the supply chain forecast to reduce inventory costs and increase fleet readiness

With severe challenges of delivering new aircraft on time and sustaining aircraft in the commercial and defense sectors, A&D companies require lean, highly efficient operations to stay competitive and profitable - and the key to being profitable is effective management of large and complex supply chains. Forecasts can greatly affect manufacturing and repair efficiencies and aircraft readiness. Traditional forecasting techniques use supply in response to booked demand instead of recognizing demand signals, which can greatly improve forecasting accuracy. Automating and improving forecasting accuracy can deliver increased margins and profitability – and enhance the bottom line.

" To stay competitive and profitable in the face of the global changes impacting recent demand patterns, A&D supply chain organizations must embrace demand-driven value network (DDVN) principles, processes and tools."

— 2010 AMR Supply Chain Top 25 A&D, Gartner Research


How SAS® Can Help 

For A&D companies with supply chain forecasting challenges, SAS helps improve forecasting accuracy, enhance sales and operations planning, and synchronize multivariate forecasting.

  • Automate and improve forecasting accuracy. Using large-scale, automated statistical model selection and optimization, improve your statistical forecasting performance through a complete array of advanced forecasting methods to model and forecast all products across your product portfolio.
  • Rapidly produce forecasts with an improved S&OP forecasting process. An advanced consensus forecasting planner workbench is supported by advanced analytics for a more structured approach. With an automated forecasting process and workflow, generate a more accurate and unbiased consensus forecast for continuous improvement and strategy alignment across all business units. 
  • Increase the accuracy of forecasting models. SAS populates spreadsheets from a central database and provides a workflow engine that populates spreadsheets in a secure environment to capture forecast changes for auditability. Collect data and push it out to stakeholders in an automated workflow and compare previous period forecasts to actual for continuous improvement.
  • Gain a comprehensive view of supply chains across the enterprise. With SAS, you can automatically extract the data, normalize it, correct missing values, search for duplicates, and create a single hierarchical data structure to be synchronized by all of the internal functional units of the enterprise.
  • Synchronize and align corporate forecasts to roll up forecasts. All functional units can easily align with the corporate forecast by working off the same data and synchronizing their own business unit plans. A multivariate forecast with appropriate units/measurements for each functional unit provides the ability to model scenarios and do what-if analysis using micro- and macroeconomic variables.

How SAS® Is Different 

SAS offers workforce planning capabilities that match your reality today, while anticipating demand for tomorrow. Only SAS provides you with the right resources for intelligent workforce analytics, including:

  • Patented, large-scale automatic forecasting. SAS provides large-scale automatic hierarchical forecasting with complete reconciliation, providing users with a statistical forecasting engine that automatically creates a business/product hierarchy, automatically assesses every level of the hierarchy to determine the appropriate statistical model based on statistics and business rules, and forecasts each level. 
  • Patented model repository. SAS is the only solution on the market today that offers such a wide range of statistical methods as well as custom-developed algorithms to use for forecasting within a hierarchy, and with built-in scalability. 
  • Patented event modeling console. An easy-to-use environment with predefined holidays with pulse, ramp-up/down, level shift and temporary event modeling approaches – or custom events – that statistically measure the impact of sales promotions, marketing events and other activities, or allow other simulations.
  • What-if analysis and scenario planning. Evaluate exceptions to your sales history and plan for future events, including new product, location and channel introduction. Conduct what-if analysis using statistical models to find the optimal forecasting scenario based on available marketing investment strategies.
  • Advanced consensus forecasting planner workbench. Our fully automated and statistically driven workbench provides weighted consensus forecasting collection, development and viewing ability with gap analysis monitoring, tracking and reporting with alerts.
  • Monitoring, tracking and forecasting of performance metrics. Measure forecast performance against KPIs through an interactive dashboard with balanced scorecard drill-down/up capabilities that can be viewed and shared to disseminate forecast performance metrics and tracking reports on a companywide basis.

Related Products and Solutions

SAS® Demand-Driven Forecasting

SAS Demand-Driven Forecasting drives the development of the consensus forecast in conjunction with the sales and operations planning (S&OP) process. Combining the power of automation, analytics and workflow, it generates the most unbiased and accurate consensus forecast on a large-scale basis.

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