Manufacturing Cloud is a Salesforce solution designed specifically for manufacturers to manage their business processes more efficiently. One of the key features of Manufacturing Cloud is Advanced Account Forecasting, which enables better forecasting with customization, allowing all departments to work together to provide more accurate forecasting that includes opportunity and sales agreements.
What is Advanced Account Forecasting?
Advanced Account Forecasting is a feature of Manufacturing Cloud that allows manufacturers to create and manage forecasts for their customers. It provides a centralized location to track all the details of an account forecast, including the products, planned quantities, expected order dates, as well as compare this forecast to actual order quantities. This feature enables manufacturers to forecast their sales more accurately by taking into account the specific needs of each customer.
How does Advanced Account Forecasting work?
Advanced Account Forecasting allows manufacturers to create account forecasts based on their sales agreements, opportunities, as well as have the flexibility to add business-specific key metrics (e.g. market data). Sales agreements represent the planned run-rate business, while opportunities represent new and/or one-time business. By combining these two types of forecasts and factoring in any other business-specific metrics, manufacturers can create a more accurate picture of their demand forecast.
Advanced Account Forecasting also allows manufacturers to customize their forecasts based on the specific needs of each area of their business. For example, if one division forecasts on a monthly basis at a product category level, but another division forecasts quarterly for each individual product, Advanced Account Forecasting gives the flexibility to create different forecast views for each division.
Benefits of Advanced Account Forecasting
Advanced Account Forecasting provides several benefits for manufacturers, including:
- More accurate forecasting: By taking into account the specific needs of each customer, manufacturers can create more accurate sales forecasts and better customer service.
- Better collaboration: Advanced Account Forecasting enables all departments to collaborate to provide more accurate forecasting, including sales, operations, and finance.
- Customization: Account-Based Forecasting allows manufacturers to customize their forecasts based on the specific needs of their business, which can lead to better forecasting data.
Real-World Examples: Advanced Account Forecasting
Enhanced Customer Satisfaction:
- Scenario: A manufacturing company produces customized machinery for different customers.
- Application: By utilizing Advanced Account Forecasting, the company can tailor its forecasts based on the unique requirements of each customer. This ensures that the manufacturing process aligns closely with customer demands, leading to timely deliveries and improved customer satisfaction.
Improved Cross-Departmental Collaboration:
- Scenario: A manufacturing firm faces challenges coordinating sales, operations, and finance teams for accurate forecasting.
- Application: Advanced Account Forecasting facilitates seamless collaboration among departments. Sales teams can provide real-time insights into customer demands, operations can access these forecasts and adjust production schedules accordingly, and finance can align budgets with accurate forecasts. This integrated approach enhances overall efficiency and reduces bottlenecks.
Optimized Inventory Management:
- Scenario: A manufacturing company deals with a diverse product portfolio and struggles with inventory management.
- Application: With more accurate forecasting, the manufacturing business can optimize inventory levels. By customizing forecasts based on specific products and customer demands, the company can reduce excess inventory costs, minimize stockouts, and streamline the supply chain.
Flexible Production Planning:
- Scenario: A manufacturer operates in a dynamic market with fluctuating demand for certain products.
- Application: Advanced Account Forecasting allows businesses to adapt their forecasts based on changing market conditions. This flexibility enables manufacturers to adjust production plans promptly, ensuring they meet demand spikes and avoid unnecessary overproduction during periods of low demand.
Strategic Resource Allocation:
- Scenario: A manufacturing company needs to allocate resources efficiently to different projects.
- Application: Customization features of Account-Based Forecasting enable manufacturers to forecast demand and give visibility to operations. In turn, this helps operations effectively allocate resources based on the forecast for specific products or customer accounts. This strategic approach to resource allocation helps in optimizing production efficiency and reducing costs associated with underutilized resources.
Proactive Risk Mitigation:
- Scenario: A manufacturing business is exposed to uncertainties, such as supply chain disruptions or market changes.
- Application: Accurate forecasting enables proactive risk mitigation. By anticipating potential challenges, manufacturers can implement contingency plans, secure alternative suppliers, or adjust production schedules to navigate disruptions effectively.
Conclusion
Advanced Account Forecasting is a powerful feature of Manufacturing Cloud that enables better, more-customizable forecasting, allowing all departments to work together to provide more accurate forecasts that includes opportunity, sales agreement, order, and custom metric data. By using Advanced Account Forecasting, manufacturers can create more accurate demand forecasts, improve collaboration between departments, and customize their forecasts based on the specific needs of their business.
If you are a manufacturer looking to optimize your business processes and improve your demand forecasting, contact our team today to learn more about how Manufacturing Cloud can help you achieve your goals.