Why Traditional Forecasting Fails Modern Manufacturing
The manufacturing industry is in the midst of a perfect storm. Customer demands are evolving at breakneck speed, leaving traditional forecasting methods floundering in the wake of change. This reliance on outdated practices, heavily dependent on historical data and manual processes like spreadsheets, is proving inadequate. A telling statistic reveals this disconnect: only 57% of manufacturing salespeople are confident in their company's ability to adapt to a shifting market. This lack of confidence exposes the fundamental flaw – traditional forecasting is a playbook for a bygone era.
The culprits behind this struggle are twofold: inaccuracy and inflexibility. Forecasting solely based on past data fails to account for the ever-evolving customer landscape. New trends, economic fluctuations, and unforeseen events can render historical benchmarks obsolete. Traditional methods lack the agility to adapt, leaving manufacturers vulnerable to these disruptions.
Furthermore, manual processes and siloed data restrict manufacturers’ ability to react swiftly. Collaboration across teams gets bogged down in endless iterations of spreadsheets, hindering a timely response to market shifts. This inflexibility is a significant barrier to success in today’s dynamic environment.
Example: Company B, a producer of TVs, used a rigid forecasting model that didn’t account for seasonal fluctuations or major sporting events. This led to missed opportunities during peak seasons like the holiday shopping period for the World Cup, where demand for TVs typically spikes. Further compounding these issues, they had separate sales and production teams with no centralised data platform. This made it difficult for them to share real-time information on inventory levels and customer demand. This lack of agility resulted in production delays and missed delivery deadlines.
The statistics paint a clear picture: a staggering 76% of manufacturers acknowledge the obsolescence of traditional forecasting. This widespread recognition highlights the industry’s growing need for a new approach. However, the prevalence of outdated practices remains high, with nearly all manufacturers (95%) still utilising manual forecasting techniques.
A Beacon of Hope: Embracing Automation and Transparency
Despite the dominance of manual methods, a positive trend is emerging. A gradual shift towards automation is underway, with only 17% of manufacturers primarily relying on manual processes. This shift offers a glimmer of hope for improved efficiency and a more responsive approach.
Cloud-based planning is gaining significant traction, with 80% of manufacturers recognising its importance. This move towards centralised and accessible data represents a critical step forward. By breaking down data silos, manufacturers can foster better collaboration across teams and departments, enabling faster response times to market changes.
However, larger manufacturers face a specific challenge: complexity creates inaccuracy. Enterprise-level companies, with their intricate networks of software systems, product lines, channels, and internal divisions, often struggle the most with traditional forecasting. This fragmented environment creates a disconnect between forecasting and customer-facing teams, hindering the ability to gain a holistic view of customer needs.
The core issue behind inaccurate forecasts is a lack of transparency and accessibility to data across the value chain. Data fragmentation prevents manufacturers from gaining a comprehensive understanding of their operations and customer needs. This lack of transparency is the root cause of forecasting failures.
Example: Company E, a clothing manufacturer, had a disconnect between its sales and marketing teams. The sales team was optimistic about a new product line, but the marketing team lacked sufficient data to create targeted campaigns. This miscommunication led to poor product launch and low sales figures.
Furthermore, a significant disconnect exists within manufacturing companies regarding operational efficiency. Departments hold varying views on their responsiveness to market changes. For instance, operations teams are demonstrably less confident in their ability to react swiftly compared to their marketing or sales counterparts. This internal misalignment underscores the need for better communication and a unified approach to forecasting.
Salesforce: A Powerhouse of Data and Collaboration
Salesforce offers a comprehensive suite of cloud-based solutions designed to break down data silos and foster seamless collaboration across departments. By centralising customer data, sales forecasts, and real-time insights on a unified platform, Salesforce tackles the core challenges identified earlier.
- Enhanced Visibility: A 360-Degree View of the Customer Imagine a world where sales reps, marketing teams, and operations personnel all have access to the same up-to-date customer information. With a centralised repository of customer data, purchase history, and communication records, manufacturers gain a holistic view of their customers, Salesforce’s CRM platform enables them to tailor their forecasting strategies accordingly.
- Real-Time Intelligence: The Power of Predictive Analytics Salesforce doesn’t stop at data collection; it empowers manufacturers to harness the power of that data. Salesforce Einstein, a built-in AI feature, utilises advanced analytics to identify trends, predict customer behaviour, and generate more accurate forecasts. This real-time intelligence allows manufacturers to anticipate market shifts and proactively adjust their strategies.
- Streamlined Collaboration: Breaking Down the Silos By providing a central platform for communication and data sharing, Salesforce fosters true collaboration. Sales reps can share insights from the field with marketing teams, who can then refine their campaigns based on real-time customer preferences. Operations teams gain better visibility into sales forecasts, enabling them to optimise production schedules and inventory management. This seamless flow of information across departments empowers manufacturers to react swiftly to market changes.
- Automation Revolution: Freeing Up Time for Strategic Thinking When automating many of the tedious tasks associated with traditional forecasting, Salesforce frees up valuable time for manufacturers to focus on strategic initiatives. Automated workflows can handle tasks like data entry, report generation, and sending alerts. This not only improves efficiency but also minimises the risk of human error in manual data entry.
The Road Ahead: A Future-Proof Forecasting Approach
By embracing Salesforce and its suite of cloud-based solutions, manufacturers can move away from outdated forecasting methods and step into a future of agility and responsiveness. With a centralised platform for data, real-time insights, and seamless collaboration, manufacturers can gain a competitive edge in the ever-evolving marketplace. Salesforce empowers them to weather the storm, turning disruption into opportunity through data-driven insights.
At Pracedo, we’re not just Salesforce Consultants. We’re the driving force behind innovation, change, and visionary solutions dedicated to boosting revenue. Our mission is to redefine the customer journey by simplifying processes and helping people to work smarter, not harder. Our purpose is to create a lasting impact on people, organisations, and communities, all powered by the capabilities of Salesforce.
Our recent acquisition by Collabera Digital, marked a significant milestone in our journey of growth and innovation. This exciting new chapter promises to propel us forward in our mission to redefine excellence in the industry globally across the EMEA and APAC regions.
Tags: Salesforce, CRM, Salesforce Integration
Leave a Reply
Jack Stevens, Manufacturing Practice Director at Pracedo
Boasting a rich tapestry of experience in Salesforce consulting and account management, Jack's journey has been marked by roles at industry titans like 4C and Salesforce itself. His profound grasp of Salesforce solutions has been a catalyst for business transformation, aiding many enterprises in refining their sales processes and sparking growth through inventive, impactful strategies. Jack's expertise isn't just deep—it's expansive, covering a spectrum from lead generation and customer acquisition to retention and encompassing strategic planning and execution with finesse.
About
At Pracedo, we’re more than Salesforce Consultants – we’re catalysts for change, empowering organisations with visionary solutions for smarter work and impactful results.
Recent Reads
