How Businesses Are Profiting With Robust Forecasting Tools
Over the past two years, COVID-19 has reshaped the global economy forcing businesses to adapt and re-think operations due to challenges in supply chain, changes to workforce and access to capital. Companies that employed advanced project management technologies into their organizational structure and operational processes have been most stable in navigating through unchartered territory and continuing to thrive.
Accurate forecasting in any organization is key to creating a pro-active decision-making environment. Forecasting solutions before the pandemic did not require impressive computational capabilities due to a relatively stable economy. However, the volatility of the current climate has required organizations to adopt solutions that prepare them for constant change. In fact, those who have adopted robust technology into their forecasting models have recorded higher profits over the pandemic.
Companies have been adjusting their forecasting capabilities to match the current economy by:
Contingency Planning in Managing Supply Chain Uncertainty
The pandemic has had several impacts on the global supply chain, with costs of freight at record highs and delays increasing by the day. Freight costs have increased by 351% from this time last year, with port congestion, increased demand for physical goods, and customs delays all playing a significant role in the increase. By remaining in a pre-pandemic mindset and making business plans under ‘normal’ circumstances, businesses will continue to make the same mistakes. Therefore, contingency planning for a higher degree of uncertainty will see your organization minimize losses should those situations that effect your supply chain arise in the future.
Sustained increased costs means that companies cannot receive goods under the timeframe required and pre-ordering for products must occur months in advance. Supply chain issues have significantly impacted cash flow, and as a result some companies have been unable to effectively procure products and complete projects. Contingency planning helps accommodate for unpredictable scenarios and ensures project teams know what to do in unfamiliar circumstances.
Organizations that effectively manage their supply chain through sufficient continency planning can thrive under a volatile economic landscape. To incorporate a high level of adaptability into your organization, it’s critical to have contingency plans that account for externalities.
Making Profitable Decisions
Utilizing a centralized decision-making platform is arguably one of the most important aspects of improving organizational response times. Consistent and quick decision-making is crucial in situations where time is of the essence and situations are complex in nature. The solutions employed by the project team should also reflect the company’s chosen management and operational structure.
Solutions that empower organizations to adapt should analyze a wider range of data metrics and receive data from a larger number of disparate sources. Solutions such as CURA™ Forecasting, built on a data integration platform, allow for a wider range of data to be consolidated into a single analysis tool, ensuring no stone is left unturned when it comes to decision-making.
In order to make profitable decisions, it’s vital to consider your industries’ economic growth to capitalize on opportunities in areas you wouldn’t usually be in, therefore giving you the ability to grow horizontally into new markets and maximize profit.
Utilizing Forecasting Abilities
Forecasting, regardless of the industry, is a singular line of financial performance from which decision-making stems. Without an accurate forecasting model, decisions are formed off unreliable and inaccurate data and ideas of what the economic future holds.
Organizations that have been able to successfully adapt to the current climate and derive profitable results are those whose forecasts have been able to update faster, analyze a wider range of data, and use complicated modeling algorithms to predict circumstances that may have been considered impossible ten years ago.
While the past two years have presented organizations with an abundance of new challenges, opportunities have come in equal form but in ways not overly apparent. With the assistance of advanced technologies, organizations worldwide have been able to adapt to match the changing economic landscape while continuing to derive profit during difficult times. The significant impacts of COVID-19 can be incorporated into a bespoke management plan when employing the right solutions and practices.
For organizations interested in improving their project management capability through CURA™ Forecasting, contact our professional team at Foresee Consulting. Discover how the right solutions and processes can enable your organization to adapt to the future and grow amid uncertainty.