Loss of forecast data visibility when it is converted to a production build plan. Inability to obtain a thorough view of the forecast exceptions in a real-time manner. It is a more preferable situation to have a greater supply than actual demand to meet those commission objectives. The Finance group pressures the Operations group to ensure that minimal inventories exist. This situation often puts these groups at odds with each other.
Negative feelings build as time goes on.
Each group begins to wonder if the other is competent. In reality, both groups must recognize that the forecast is the best understanding at that time and that there will be errors. The emphasis is to reduce the adverse impact. This is achieved by managing the forecast errors quickly and efficiently by using exception planning and real-time demand trend analysis. The key to success is to empower both groups with meaningful real-time information and business motivations for joining together in the corrective action process.