Forecasting Fundamentals

Forecasting is a process that leverages trend analysis along with past and present data to make predictions about the potential future course of the business. A well-designed forecast drives strategic business decisions and informs critical business strategies, provides support for budgeting and planning, and enables risk management by helping to identify and plan for potential risks. 

In this article, APQC reviews common forecast inputs and the most popular forecast approaches, shares cross-industry benchmarks related to forecasting, and highlights some of the biggest challenges that can impact forecast creation and accuracy.