Forecasting is always challenging. Many companies use their best guess or the prior period’s sales (termed a “naïve forecast”), which research shows us is consistently inferior to statistical forecasting. And with good reason—people simply cannot generate accurate forecasts through speculation for hundreds, oftentimes thousands of products. Also, a prior period’s sales may be uncorrelated with the upcoming period’s sales.
The creation of the statistical forecast plan remains the critical first step in the planning process. The more rigorous statistical forecasts provide companies with better planning. Even with statistical forecasting, product value, velocity, volume, seasonality, to name a few factors, make the forecasting process uncertain for many organizations. Compounding the problem, few firms have proven able to develop and retain seasoned, and highly skilled forecasters.
What does Chainalytics’ SFaaS do?
SFaaS creates significant value for Chainalytics’ clients. SFaaS provides superior forecasts which serve as the backbone of the planning process. While some understanding of business operations is required to create optimal forecasts, this knowledge is not the critical element for success and is easily obtainable for the client’s business leaders.
Chainalytics’ SFaaS enables companies to leverage outside expertise who are specially trained in handling large volumes of data and the use of statistical methods to develop rigorous forecasts. When a SFaaS provider generates the forecasts, the firm’s business leaders and planners are able to focus on their top priority, running the business.
On a continuous basis, SFaaS helps to:
SFaaS delivery method
SFaaS is delivered using either an “inside the firewall” solution or a secure cloud-hosted solution. Chainalytics’ experts utilize statistical forecasting applications to generate forecasts.
Whether relying solely on internal resources or using an external partner, forecasting remains a critical capability companies can’t afford to get wrong. Chainalytics’ expert forecasting teams have identified methods for improving forecast accuracy from 5% to 30% through investment-grade analytics.
If your company is exploring ways to proactively plan for and strategically design your supply chain for maximum efficiency in sales, production, sourcing, and inventory management through improved forecasting, contact Chainalytics to achieve more with SFaaS.