One Integrated Forecast
Revionics’ mission is to increase retailer profitability by enabling better management of price, promotion, markdown, inventory, assortment & space. Revionics is unique in that we offer an integrated solution that shares a common demand forecast across all of these functions. In this article, I answer the question, “Why is an integrated solution better than individual point solutions?”
Ideas are like tomatoes. They start out small and green, but if the circumstances are right, they grow and ripen until they bear fruit. That is definitely the case for Revionics’ idea to provide retailers with One Integrated Forecast.
The idea was born years ago. At the time retailers had multiple contradictory forecasts: one forecast was used for financial planning; another for replenishment; another for workforce management. There was a store forecast for all categories and a category forecast for all stores---but the two did not match at the enterprise level. There were forecasts at daily, weekly, monthly, quarterly, and annual levels---when rolled up these didn’t match either. None of the various forecasts provided the accuracy necessary to make good business decisions. Retailers could not accurately or consistently predict their business. If a business is not predictable, then how can it be managed?