Forecasting
Forecasting is a key business planning skill where professionals predict future needs, demands, and trends based on analyzing past data and market conditions. In supply chain roles, it helps companies decide how much product to make or order, how many workers they'll need, and how to plan their budgets. Think of it like weather forecasting, but for business needs - it helps prevent having too much or too little of something. This could be predicting how many products customers will buy next season, how much raw material will be needed, or what shipping capacity to plan for. While there are many technical tools used for forecasting, the core skill is about making smart predictions to help businesses run smoothly.
Examples in Resumes
Improved inventory accuracy by 25% through implementation of Forecasting models
Led weekly Demand Forecasting meetings with sales and operations teams
Developed Supply Forecasting strategies that reduced stockouts by 30%
Created Sales Forecasting reports to optimize purchasing decisions
Typical job title: "Demand Planners"
Also try searching for:
Where to Find Demand Planners
Professional Organizations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where actual sales significantly differ from forecasts?
Expected Answer: A senior forecaster should discuss their process for analyzing the root cause, adjusting forecasting models, collaborating with different departments, and implementing both short-term solutions and long-term strategic changes.
Q: How do you balance different departments' needs when creating forecasts?
Expected Answer: Should explain how they coordinate between sales, operations, finance, and manufacturing teams, manage conflicting priorities, and create consensus while maintaining forecast accuracy.
Mid Level Questions
Q: What factors do you consider when creating a demand forecast?
Expected Answer: Should mention historical data, seasonality, market trends, promotional activities, competitor actions, and economic indicators, showing how these factors influence forecasts.
Q: How do you measure forecast accuracy?
Expected Answer: Should explain common metrics like Mean Absolute Percentage Error (MAPE), bias, and tracking signals in simple terms, and how they use these to improve future forecasts.
Junior Level Questions
Q: What is the difference between qualitative and quantitative forecasting?
Expected Answer: Should explain that quantitative uses numbers and historical data, while qualitative relies on expert opinions and market research, and when each might be more appropriate.
Q: How would you handle seasonal trends in forecasting?
Expected Answer: Should demonstrate understanding of how seasonal patterns affect demand and explain basic methods for adjusting forecasts based on historical seasonal patterns.
Experience Level Indicators
Junior (0-2 years)
- Basic Excel forecasting functions
- Data collection and organization
- Understanding of supply chain basics
- Basic statistical concepts
Mid (2-5 years)
- Advanced forecasting techniques
- Cross-functional collaboration
- Forecast accuracy analysis
- Inventory management principles
Senior (5+ years)
- Strategic planning
- Team leadership
- Advanced analytics
- Supply chain optimization
Red Flags to Watch For
- No understanding of basic statistical concepts
- Unable to use Excel or similar tools
- Poor communication skills
- No experience with data analysis
- Lack of attention to detail
