The control of sales forecasting and its contributions to the company
Sales forecasting is defined collectively as the activity which estimate what will likely be the demand of the market in the future. It is based on historical and current information of a company. Forecasts are present in multinational companies as well as in SME.
There are different methods to realize and improve sales forecasts. For a company active on the export’s market for example it is important to segment these markets in order to define the most suitable methods.
The company which neglects its sales forecasts is faced with risks of bad planning what engenders is overstocks, stock shortages, a mismanagement of the schedules of its employees on production lines, etc. All these consequences have a considerable financial impact for the company.
Through an in-depth study of tools and concepts of sales forecasts, the objective is to provide a SME a better control on these forecasts and to manage better stocks, diverse logistic costs, etc. In one more large scale, sales forecasts also allow to give good inputs to the company for the fixation of these future objectives: they are the basis of the S&OP (Sales and Operations Planning), process of periodic decision-making which allows to establish a unique consensus enter targets of sales, planning, distribution or even finance. This unique plan is then shared at every level by the company.
Research and publications
Publications et présentations
Improving Sales Forecasting by Combining Key Account Managers’ Inputs and Models Such as SARIMA, LSTM, and Facebook Prophet
Agneta Ramosaj, Nicolas Ramosaj, Marino Widmer, Journal of Applied Business and Economics (2022) | Journal article