How to organize the forecasting process to set goals & estimate outcomes
To organize the forecasting process for the average company it is important to ensure that a long-term strategic plan is developed that will increase growth and improve profit margins.
The process will include the availability of existing products and services, new product and service opportunities, profit potential of internal investments and the rate of return on strategic proposals. This process and plan will involve an entire team, as a proper forecast should include various aspects of the business.
Naturally, the sales department would be included in the team as the services or products provided to consumers must be accurately forecasted, as it is a significant part of the strategy.
Procurement and supply operations would also be included in the process as the profit margin can only be calculated once the supply costs are also factored in. Both human and finance resources need to be involved as the staff/personnel and the way various financial scenarios can be handled would also impact the company’s ability to grow and profit. Since the plan/forecast would be long term, it would be essential to involve the technology or IT departments as things may advance in the usual manner that technology does and this would be imperative to avoid the company falling behind its competitors.