Planning smarter in Asia: enhance forecasting with integrated demand planning & Forecast Value Add (FVA)

Why greater detail alone doesn’t guarantee accuracy

EPM platforms help improve forecast accuracy through data granularity and tighter time horizons, accommodating seasonality, promotions, markdowns, cannibalization, substitutions, and inventory policies. While these tools increasingly integrate machine learning and AI, more granular data doesn’t always yield better accuracy. Real improvement stems from clear process accountability, not just data volume.

Tangible benefits of accuracy: Gartner & IDC insights

Gartner Insights

• A modest 6% improvement in forecast accuracy can drive a 10% increase in perfect order rates and a 10–15% reduction in excess inventory.
• Additionally, Gartner reports that 76% of supply chain executives say their organizations are facing more frequent disruptions now compared to three years ago, underscoring the need for resilient forecasting.

IDC — Asia-Pacific Focus

• According to IDC’s FutureScape, by 2026, 25% of APEJ (Asia/Pacific excluding Japan) organizations will deploy GenAI-powered platforms that consolidate data to simulate and predict up to 60% of supply chain risks.
• Moreover, IDC projects that by 2028, 60% of A2000 supply chain organizations in the Asia-Pacific region will adopt AI/ML for dynamic shipment planning and network optimization, reducing disruption response time by 75% and trimming transportation spend by 5%.

These statistics underscore the strategic value of modest improvements to forecasting, especially when powered by AI, and highlight the pace of AI adoption in Asia.

Driving value through Forecast Value Add (FVA)

To discern what parts of your forecasting process truly add value, you must dissect each step—statistical modeling, sales adjustments, inventory policies, channel strategies, marketing activities, and ramp-up/down decisions—within your EPM system. FVA allows you to measure the impact of these steps, visualized via waterfall charts and tracked over time, enabling efficient process governance.

FVA enhances visibility into each input’s contribution, helping teams pinpoint which practices improve—or undermine—forecast accuracy.

Integrated demand planning + FVA: a strategic approach

For Asian organizations to elevate forecasting, they must:

• Use FVA to map value contributions (positive or negative) from each functional area.
• Embed these steps into EPM processes and track them via waterfall visualizations and KPIs.
• Align shared goals across departments—not just forecast accuracy, but also perfect order rates, inventory optimization, and supply chain responsiveness.
• Monitor FVA over time to support continuous improvement and adaptation.

VISEO’s role in Asia’s forecasting excellence

VISEO guides organizations across Asia in selecting and implementing EPM, S&OP, and IBP platforms—with regional considerations at the core. We ensure systems are outcome-led, not merely feature-led, by embedding clear business objectives, process ownership, and cultural alignment throughout deployments.

Asia-Specific advantages of this integrated approach