Forecast Value Added - Supply Chain in 3 minutes

Conor Doherty, Lokad's technical writer, discusses the Forecast Value Added (FVA) tool, a diagnostic tool for the forecasting process. FVA integrates insights from various departments to enhance forecasting precision. Doherty explains the steps of an FVA analysis and its effectiveness. He notes that while FVA can demonstrate the value of insights, it presumes that greater forecasting accuracy is always beneficial, which is not always the case. He suggests that the focus should be on reducing monetary error rather than pursuing greater accuracy. He concludes that FVA could be used as a competence test, but does not validate the routine use of non-specialists for forecasting input.
Learn more in the entry Forecast value added: www.lokad.com/...
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Timestamps:
00:00:00: Introduction to Forecast Value Added (FVA)
00:00:41: Explanation and steps of FVA analysis
00:01:59: Back testing and evaluating FVA accuracy
00:02:47: FVA and manual interventions
00:03:56: FVA's presumption on the value of accuracy
00:04:37: FVA as a competence test for forecasting protocols
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[@dannywoods17]

Good info, thanks for sharing!