Rethinking Demand Planning [Episode 08] Low Forecastability

In Episode 8 of Rethinking Demand Planning, we explore the toughest challenge yet—low forecastability. These are item-location combinations with a COV greater than 0.7, where traditional forecasting methods often fail. But unpredictability doesn’t mean unmanageable.

Here’s how to improve this demand flow using four strategic levers:
1️⃣ Data Alignment & Cleansing – Fix historical data issues, item codes, calendar mismatches, and unit definitions.
2️⃣ Item Recognition – Identify unforecastable items (e.g., special packs, displays, custom SKUs) and apply tailored rules instead of statistical forecasting.
3️⃣ Hierarchy Shifting – Move up the product hierarchy or group by market behavior to find stability in the chaos.
4️⃣ Collaboration & Market Signals – Strengthen relationships with distributors and customers to get better visibility and shared forecasts.

With o9’s flexible data models and the ability to incorporate external signals, even low forecastability flows can be managed with agility. Learn how to shift from reactive to proactive planning—even for the most volatile items.

Up Next: Bringing It All Together – Holistic Planning Across Demand Flows

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o9 is the only vendor to be recognized as a Customers’ Choice in the 2025 Gartner® Peer Insights™ Customers’ Choice for Supply Chain Planning Solutions. o9 was the only software provider that met or exceeded the market average scores for both Overall Experience and User Interest. 

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