{"id":7357,"date":"2018-10-05T08:30:00","date_gmt":"2018-10-05T12:30:00","guid":{"rendered":"https:\/\/demand-planning.com\/?p=7357"},"modified":"2018-10-05T09:01:01","modified_gmt":"2018-10-05T13:01:01","slug":"show-management-forecasting-training-drives-profits","status":"publish","type":"post","link":"https:\/\/demand-planning.com\/2018\/10\/05\/show-management-forecasting-training-drives-profits\/","title":{"rendered":"Ask Dr. Jain: How Can I Show Management That Forecasting Training Will Increase Profits?"},"content":{"rendered":"

Question:<\/h2>\n
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Dear Dr. Jain,<\/div>\n

I am the demand planning manager at a FMCG company. We are expanding, taking on several new\u00a0forecast<\/span>\u00a0analysts in an attempt to bring the function to maturity. I am lobbying management to increase the training budget (which I feel is a must for our new hires) but facing push back. How can I convince them that training will be a good investment, and is there any data I can show them that relates training to\u00a0forecast<\/span>\u00a0accuracy<\/span>\u00a0or ROI?<\/div>\n
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Answer:<\/h2>\n
<\/div>\n
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Hi,<\/div>\n<\/div>\n
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We recently completed a research report<\/a> that attaches a value (percentage improvement in forecast accuracy) to specific initiatives.That is to say, if we carry out a particular activity in demand planning (like training or implementing a particular forecasting method) we can gauge the likely improvement it will have on forecast accuracy.\u00a0IBF training<\/a>, for example, has been statistically proven to improve under-forecasting by nearly 1.5%, representing average savings of $5.28 million. There are also significant differences in forecast accuracy depending on the forecasting method used – the decomposition model provides an average error of 17.72% whilst the naive model comes in at 28.22%. If you use a naive model currently, you have a huge opportunity to drive massive savings.<\/div>\n<\/div>\n
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Those figures speak for themselves and should be an easy sell to leadership –\u00a0\u00a0you can download the report here<\/a>.\u00a0Also take a look at IBF’s\u00a0forecast accuracy calculator<\/a>. Input your likely forecast error improvement and it’ll show your likely dollar savings amount.<\/div>\n
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I hope this helps.<\/p>\n

Dr. Chaman Jain,<\/strong><\/p>\n

St. John\u2019s University<\/strong><\/p>\n<\/div>\n<\/span>","protected":false},"excerpt":{"rendered":"

Question: Dear Dr. Jain, I am the demand planning manager at a FMCG company. We are expanding, taking on several new\u00a0forecast\u00a0analysts in an attempt to bring the function to maturity. I am lobbying management to increase the training budget (which I feel is a must for our new hires) but facing push back. How can […]<\/p>\n","protected":false},"author":4,"featured_media":7358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[376,359],"tags":[457],"class_list":{"0":"post-7357","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-skills","8":"category-people","9":"tag-forecasting-training"},"_links":{"self":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/7357"}],"collection":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/comments?post=7357"}],"version-history":[{"count":0,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/7357\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/media\/7358"}],"wp:attachment":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/media?parent=7357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/categories?post=7357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/tags?post=7357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}