Consumption-Based Forecasting and Planning by Charles W. Chase

This book presents a new approach to forecasting for retailers and manufactures for demand planning that emphasizes why changing from a supply centric approach to a true demand (consumption-POS, syndicated scanner data) approach is required to be successful in the new digital economy. The current COVID-19 disruption has emphasized the need to change from tradition demand planning to consumption-based forecasting and planning with a renewed focus on the consumer, rather than only on supply. It will showcase short-term and mid-term demand sensing, with a focus on the disruptions being caused by the digital economy, and COVID-19. This book: Significantly helps improve demand forecasting and planning accuracy, which reduces the costs of finished goods inventories, out-of-stocks on shelf, waste, and working capital. In turn it increases profit margins and revenue. Helps companies understand the short-term changes in consumer demand patterns as a result of the digital economy, and COVID-19. Also, what is driving those changing consumer demand patterns (price, sales promotions, in-store merchandizing, epidemiological, economic and other related factors like unplanned events related to the pandemic crisis). Addresses changes in people skills, processes, analytics, and technology. Provides real case examples using real data, and how to apply advanced analytics and machine learning to solve current business problems. Provides a framework for changing the way demand forecasting and planning are done, as well as the change management requirements for sustainability.