Providing software solutions since 1976
Providing software solutions since 1976
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Demand-Driven Forecasting Eclipses Gut InstinctNew SAS book on demand-driven forecasting shows businesses need to look forward as well as backward to make better decisionsCARY, NC (Jul. 29, 2009) – With businesses struggling to compete and survive in rough economic seas, SAS manufacturing and supply chain expert Charles Chase has thrown them a 260-page life preserver. His book, “Demand-Driven Forecasting: A Structured Approach to Forecasting” hits stores this week. Many businesses are rapidly adopting demand-driven forecasting to reduce inventory costs, drive improvements in the supply chain, and generate more profitable growth for their products. Chase is business enablement manager in the manufacturing and supply chain global practice of SAS, the leader in business analytics software and services. The book provides business decision makers with a detailed blueprint to better understand demand-driven forecasting and includes many real-life examples. In the book, Chase espouses mixing historical data with real time analytical input – while checking gut instinct at the door – to accurately forecast demand. This groundbreaking approach has the potential for a hefty return on investment. A joint SAS/Purdue University study found that demand-driven supply chains deliver greater return on investment than traditional supply chains. The study found an average of a 1.7 times increase in gross profit margin, a 2.8 times improvement in forecast accuracy and a 2.3 times increase in order fulfillment. “With such powerful numbers to demonstrate the value of demand-driven forecasting, it’s easy to see why businesses are looking to add it to their supply chain in a down economy, said Chase. “With some tentative signs of an emerging recovery, others are thinking about expanding their use of demand-driven forecasting.” Chase writes that demand-driven forecasting uses analytics and domain knowledge to sense, shape and predict demand. Although it is a new design, the quantitative methods that support it have been around for nearly a century. Chase writes that an organization today can implement demand-driven forecasting across thousands of products. “Some authors of forecasting books take an academic approach,” said Dan Kiely, Senior Director of Forecasting Analytics at Celegne, a multinational biopharmaceutical company. “Others gloss over technical data that is truly needed for modern day forecasting. In Demand-Driven Forecasting, Chase fills a huge void in technical literature with concise explanations for advanced statistical methods and credible business advice for improving ways to predict demand for products and services.” SAS is globally recognized for its expertise in demand-driven forecasting software. SAS’ forecasting solutions are licensed at more than 7,700 sites worldwide, helping companies accurately forecast demand in multiple industries ranging from consumer packaged goods (CPG) and bio-pharmaceuticals to high-tech, automotive, heavy manufacturing and others. SAS® Demand-Driven Forecasting is an enterprise wide demand forecasting and planning solution that helps organizations develop consensus forecasts in conjunction with their sales and operations planning process. Specific capabilities include:
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 45,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world
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