Study: Retailers sense need for improved demand planning

Key forecasting metrics have remained essentially flat for five years, but one emerging technology offers retailers the chance for improvement. According to the sixth annual Forecasting Benchmark Study from supply chain software provider Terra Technology, companies using sensing demand systems consistently double overall forecast value-add and reduce error by 37%.

The study also finds that the number of active items in the supply chain has risen by 32% since 2010, compared to a 4% lift in sales. Average sales per item have dropped 22%, while the number of items offered for sale nearly tripled during five years and 82% of those have since been discontinued.