‘Erratic’ buyers are on increasingly thin ice over forecasting

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Failure to forecast accurately and fairly is a serious issue if taken to the extreme

If there’s one thing grocers and suppliers can agree on, it’s the importance of availability. You cannot sell fresh air, as Ken Morrison used to say. So it’s worrying that the latest Groceries Code Adjudicator survey reported continued issues with forecasting data.

At 17%, the significant costs incurred by suppliers through inaccurate forecasting is now joint first (along with invoice discrepancy resolution procedures) among issues experienced. As a result 9% highlighted a lack of compensation for forecasting errors and forecasts prepared without due care. And the survey paints a picture of increasingly “erratic” retailer behaviour characterised not just by short termism and uncommunicated range reviews, but inconsistent ordering patterns combined with obtuse instructions from constantly updated retailer portals, and computer-generated forecasts that are “often unreliable, unclear, and unusable”.

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