Performing Distributive Forecasting

This chapter explains how the distributed process flow supported by M3 DMP is used to create a Sales Forecast Proposal based on Market Forecast Proposals. The forecasting activities in a cycle are performed partly by the forecasters and partly by the administrator. It includes all activities from manipulating single forecast values when creating Market Forecast Proposals to combining Market Forecast Proposals into one Sales Forecast Proposal.

Outcome

A Sales Forecast Proposal based on the combination of Market Forecast Proposals.

The Sales Forecast Proposal is the starting point for the consensus-seeking process of consolidating the forecasts to reach an Updated Sales Budget/Sales Forecast.

Before starting

M3 DMP must be prepared for the forecasting activities in the current forecasting cycle. This includes establishing the data foundation, preparing the environment and making forecast data available to the forecasters. The process explained in Preparing Forecasting Cycle is performed to achieve this.

Processes

This process consists of two activities. In the first activity, several forecasters make Market Forecast Proposals that are returned to the administrator. In the second activity, the administrator combines these Market Forecast Proposals into a Sales Forecast Proposal.

Activity Description

Performing market forecasting
Several forecasters conduct this process simultaneously to make a Market Forecast Proposal for their area of responsibility. After downloading or installing their forecast package, the forecasters make changes to forecast values and manage scenarios to reach Market Forecast Proposals. These are returned to the administrator.
Creating Sales Forecast Proposal
Through this process a Sales Forecast Proposal is created from the Market Forecast Proposals. The administrator chooses between alternative scenarios, validates proposed scenarios and combines the Market Forecast Proposals into a Sales Forecast Proposal.