Retailers have too many forecast engines, each with a slightly different prediction than the next.
Miami, FL (PRWEB) May 04, 2011
RSR Research's latest report, "Crystal Ball 2.0: The State of Retail Demand Forecasting, Benchmark 2011," RSR’s first annual benchmark on the topic, finds that retailers believe demand forecasting capabilities to be critical to their operations but struggle to incorporate demand forecasting insights deeper into their businesses.
These findings are based on a survey of 83 retailers between January-April 2011. The report can be downloaded at http://www.retailsystemsresearch.com/_document/summary/1280. The report is sponsored by Predictix and supported by DemandTec, Inc.
"Retailers have made significant investments in optimization technologies, particularly around price and labor, and demand forecasts come hand-in-hand with those capabilities,” said Brian Kilcourse, Managing Partner at RSR and a co-author of the report. “But the forecasting engines that create those inputs into optimization tools can often be completely different in terms of assumptions, time horizons, models. It adds sophistication to retailers’ capabilities, but also creates some challenging complications - building up internal siloes instead of knocking them down.”
"With more channels to manage and more leading indicators to demand, such as social media and consumer intent, retailers need all the help they can get in forecasting and managing demand," adds Nikki Baird, the report’s co-author. "The challenge isn’t that the crystal ball is cloudy but retailers just have too many forecast engines, each with a slightly different prediction than the next. Companies have yet to figure out how to reconcile them all."
"Crystal Ball 2.0: The State of Retail Demand Forecasting, Benchmark 2011" contains analysis of the business drivers, opportunities, and organizational constraints surrounding demand forecasts, as well as recommendations for creating successful demand forecasting capabilities. The report is part of RSR Research's ongoing efforts to provide market intelligence on retail technology trends, and can be downloaded here: http://www.retailsystemsresearch.com/_document/summary/1280
About RSR Research:
Retail Systems Research (“RSR”) is the only research company run by retailers for the retail industry. RSR provides insight into business and technology challenges facing the extended retail industry, and thought leadership and advice on navigating these challenges for specific companies and the industry at large. RSR’s services include benchmark reports covering the state of retailer technology adoption for topics ranging from merchandising and supply chain, store operations and workforce management, to customer-facing and multi-channel technologies. Custom research reports provide more in-depth views into topics of industry interest, and advisory services help retailers and technology vendors make the most of the insights RSR provides. To learn more about RSR, visit http://www.retailsystemsresearch.com.