What is consensus-based forecasting in SAP SCM-APO-FCS - Demand Planning?

SAP Term: consensus-based forecasting

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: In the consensus-based sales and operations planning process, forecasts from departments with different business goals - such as marketing, sales, logistics, and finance - are reviewed and integrated into a "one number" consensus forecast that is then used to drive the business planning process. 's views and reports support participants in consensus meetings for example, Sales & Operations Planning - S&OP by providing information that enables them to compare the forecasts for the purpose of identifying, discussing and closing gaps that affect their business decisions. The goal is to make changes that are agreed to by all parties. The result is a "one number" consensus forecast.

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• Key Concepts: 
  Consensus-based forecasting is a demand planning method used in SAP's SCM-APO-FCS Demand Planning component. It is a collaborative approach to forecasting that combines the forecasts of multiple users into one consensus forecast. This method allows for more accurate forecasting by taking into account the different perspectives of multiple users. 
  
  How to use it: 
  To use consensus-based forecasting, users must first create individual forecasts for their respective areas. These forecasts are then combined into one consensus forecast. The consensus forecast can then be used to create a demand plan that can be used to make decisions about production, inventory, and other supply chain activities. 
  
  Tips & Tricks: 
  When using consensus-based forecasting, it is important to ensure that all users are using the same data and assumptions when creating their individual forecasts. This will ensure that the consensus forecast is as accurate as possible. Additionally, it is important to ensure that all users are aware of any changes made to the consensus forecast so that everyone is on the same page. 
  
  Related Information: 
  Consensus-based forecasting is just one of many demand planning methods available in SAP's SCM-APO-FCS Demand Planning component. Other methods include statistical forecasting, time series forecasting, and causal forecasting. Each method has its own advantages and disadvantages, so it is important to choose the right method for your specific needs.