Forecasting aims to assist organizations ensure that both short- and long-term strategic plans are in place that project growth, profit margins, and even supply chain issues such as back-orders.
The process will include the availability of existing products and services, new product and service opportunities, profit potential of internal investments and the rate of return on strategic proposals. This process and plan will involve an entire team, as a proper forecast should include various aspects of the business.
Naturally, the sales department would be included in the leadership team as the services or products provided to consumers must be accurately forecasted, as it is the critical part of any company’s short- and long-term goals.
Procurement and supply operations would also be included in the process as the profit margin can only be calculated once the supply costs are also factored in. Both human and finance resources need to be involved as the staff/personnel and the way various financial scenarios can be handled would also impact the company’s ability to grow and profit. Since the plan/forecast can be either short-term or long-term, it would be essential to involve the technology or IT departments as things may advance in the usual manner that technology does, and this would be imperative to avoid the company falling behind its competitors.