Difference arise between the Sales Volume Forecast and the Shipment Forecast because of differences in definition and in timing. Often the process for drawing up the sales forecast means it is based on information that is days (or even weeks) old, while the shipment forecast may be using order data to look in to the future – in a fast moving industry that can lead to significant gaps between forecasts.

For me the key is that the separate forecast streams should be “Consistent” – based on the same assumptions, plans and, as much as possible, on the same intelligence. All of the “5 keys” outlined in the article are important to achieving this!