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chains , especially global supply chains that are heavily networked , is really what to do with this complexity ,” explains Global Planning Excellence Manager , Nick Lynch .
“ In 2013 / 4 Terra Technology , who are now part of E2open , published an annual cross-industry survey which showed that whilst the number of products sold increases , the total amount sold remains pretty flat in most industries . Therefore , as the volume sold per product goes down we can expect SKU level forecasting to get harder the more spread out a portfolio is . This is a trend we certainly recognise . The future is not likely to be simpler than our business of today .
“ In practical terms this means that with our traditional forecast driven MRP planning tools , we purchase raw materials , manufacture products and put inventory into the warehouses based on our forecast that predicts that we ’ ll sell it . In reality , the forecast is sometimes correct ; often it is not even with best-in-class forecast performance ,” he says .
“ Products that don ’ t sell to forecast tie up precious working capital and may
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