Forecast Accuracy and the Fashion Industry
Amidst relentlessly long lead times, tariff uncertainty, fast-fashion disruptions, and hard-to-predict new product lines; the single greatest challenge, and opportunity, for fashion, apparel, & footwear brands is forecast accuracy. Getting the forecasts wrong means missing customer demand: producing too little or too much of the season’s styles, causing inventory issues, and leaving profits on the table.
Three Ways to Accommodate Forecast Error
According to ASCM, there are three ways to accommodate forecasting errors:
- Reduce the error through better forecasting
- Build more visibility and flexibility into the supply chain
- Reduce the lead time over which forecasts are required
Do All Three with Vanguard Predictive Planning
Leveraging artificial intelligence and predictive analytics, Vanguard generates statistical forecasts with unprecedented accuracy.
New collection launches are orchestrated with ease and accuracy resulting in perfect order fulfillment and little to no waste. Automate planning processes and manage phase-ins and phase-outs smoother than ever. Statistical forecasting, layered with valuable team insight, provides visibility into best through worst-case scenarios with unprecedented forecast accuracy. Probabilistic, collaborative demand planning means you can meet customer demand under the most volatile conditions.
Visibility & Flexibility
Extend planning visibility beyond the internal value chain, and collaborate with and monitor supplier and customer action. Leverage omni-channel visibility and analysis to improve sell-through performance. Better manage supplier process to unify the value chain, improving partnerships and shortening lead times. Furthermore, Vanguard’s forecast range offers flexible risk-based planning. This means your supply chain can capitalize on low-risk scenarios and build contingency plans when higher risk is present.
Speed & Agility
Continuous planning capabilities enable rapid response and supply chain agility. Inventories are balanced across the entire network based on real-time demand data. Using an unlimited number of inventory strategies and optimization rules, you can drive product toward customer demand on-the-fly, reducing stockouts and wasted inventory. Account for any number of constraints including working calendar days, true lead time variance, MOQs, and manufacturing, warehouse, or freight capacity. Plan for optimal production efficiency across the network to meet customer demand, on-time and in-full.