Timothy SorensenThe `Amazon effect' has already changed the landscape of retail marketplace but the disruption goes much deeper. As a result, demand planning and forecasting is very different to how it was just a few years ago. With e-commerce comes e-planning and if you are already not forecasting and demand planning differently - you will be.Where there once was a corner department store now consumers shop online and want a shopping experience customized to their needs. The effects of this new omni-channel world are not only the need to plan faster but it is impacting what we forecast, how we forecast it, and when we forecast it. All of this creates challenges but there are also key opportunities presented by the new e-planning environment as well. To exploit these opportunities, we need to be aware of this different type of planning and of the value of the different types of information and then subsequent exploitation of it.Brave New WorldTraditionally, forecasting techniques were based on historical demand and the assumption that history repeats itself. While these methods and principles generally hold true, with e-planning many traditional forecasting models and the technology of the past struggle to keep up. It is a brave new world for demand planners where predictive analytics encompasses a variety of new statistical techniques like probabilistic modeling, machine learning (ML), and data mining that analyze current and historical facts to make predictions about the future.AMAZON EFFECT: DRIVING NEW OPPORTUNITIES AND CHALLENGES IN DEMAND FORECASTINGEric WilsonBy Eric Wilson, Director Planning, Escalade Sports | | November 20188CIOReview
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