Key Concepts Explained
Some definitions and explanations about important notions
IBP
Integrated Business Planning is a holistic approach to business management that integrates financial and operational planning. Its value lies in its ability to provide a clear line of sight between strategy and execution, enabling businesses to achieve their goals more effectively.
S&OP
Sales & Operations Planning is a business process that aligns demand and supply, integrating financial planning and operational processes into one seamless management cycle. Unlike Integrated Business Planning (IBP), which focuses on long-term strategic goals, S&OP provides a tactical approach to meeting short-term objectives, making it an essential tool for businesses seeking agility and responsiveness.
Time Series Forecasting Tools
These technology solutions produce predictions using either historical sales or shipping data for statistical forecasting, or by utilizing a wider range of datasets such as pricing, stockouts, demographics, or epidemiological information in the case of AI/ML models. The possibilities are virtually endless.
Forecast baseline
The foundational forecast representing the “normal course of business.”
Cleansing
Eliminating irregularities from past records to mirror typical business circumstances.
Enriching
Adjusting the baseline forecast to account for future events, supported by business intelligence insights.
Shaping
Fine-tuning algorithms' inputs and settings to produce the anticipated forecast baseline.
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