In Pursuit of Consumption-Based Forecasting

Authors

Charles Chase, SAS
Kenneth B. Kahn, Old Dominion UniversityFollow

Document Type

Editorial

Publication Date

2024

Publication Title

International Institute of Forecasters

Volume

72

Pages

69-71

Abstract

[Introduction] Today's most mature, most sophisticated, best-in-class forecasting is what we call consumption-based forecasting (CBF). In contrast, the least sophisticated companies typically do not forecast at all, but rather set financial targets based on management expectations. Companies beginning to use statistical forecasting techniques usually take a supply-centric orientation, relying on time series techniques applied to shipment and/or order history. The next stage of progression is to incorporate promotions data, economic data, and market data alongside supply-centric data so that regression and other advanced analytics can be used. Companies pursing CBF utilize even more advanced capabilities to capture, examine, and understand "true" demand and combine market planning, operational planning, and forecasting. These capabilities include the areas of analytics, data, people, process, and technology.

Rights

© International Institute of Forecasters 2024. All rights reserved.

This article originally appeared in Foresight, Issue 72 (forecasters.org/foresight) and is made available with permission of Foresight and the International Institute of Forecasters.

Original Publication Citation

Chase, C., & Kahn, K. B. (2024). In pursuit of consumption-based forecasting. Foresight: The International Journal of Applied Forecasting, 72, 69-71.

Repository Citation

Chase, Charles and Kahn, Kenneth B., "In Pursuit of Consumption-Based Forecasting" (2024). Marketing Faculty Publications. 26.
https://digitalcommons.odu.edu/marketing_pubs/26