Presentation on forecasting in SAP Business One from our August 2012 user group presentation

1. Long Business Systems, Inc. (LBSi)
Management Software Solutions
We help businesses manage for success
Cleveland – Columbus – Cincinnati - Pittsburgh

2. Using Forecasts
Presented by: Vicki Smith
Why Forecast
Benefits of Forecasting
Challenges of Forecasting
Forecasting Methods
Standard Forecasting
Advanced Forecasting

3. Why Forecast?
Ensure you have inventory on hand to meet customer
demands
Helps you determine your optimal inventory levels
Understand what drives your sales
i.e. Seasonality, recent history or something else?
Vendor planning and negotiations
To increase sales and customer satisfaction

4. Challenges of Forecasting
One forecasting method may not work for all products
Too many products to efficiently review and manage
Bringing in customer provided forecasts
Base forecasts on Orders or Sales for history?
How far back in history to look?
Note: Need at least 24 months to predict seasonality
Speed or time to generate forecast for review
Integrating with current planning system

5. Which methods?
Many to choose from:
Various moving averages, seasonality and other methods
Take existing history and forecast, compare to manual
methods, observations and history
Model top or key items in your product groups
Testing needs to be fairly quick
Don’t get hung up on mathematical algorithms
Pick a hand full of items
Always have the ability to manual forecast or “no” forecast
Visit these LBSi links for more information:
http://www.lbsi.com/software/sap-forecasting
http://www.lbsi.com/software/enhancements/forecasting

6. Standard SAP Forecasts
New Advanced Settings
SAP will generate your forecast based on history
Generate based on history for sales order or deliveries and AR Invoices
Two methods to choose from: Simple Average or Monthly Average

7. Advanced Forecasting
More robust forecasting model:
More forecasting methods to better predict trends or seasonality
Use Sales (A/R Invoices and A/R Credits) or Bookings (Sales Orders)
Queries to value your forecast using the SAP Business One price lists
Plan for more than one forecast at a time
Consider history for up to 36 months
Forecast by warehouse
Use different forecast methods for:
item group, item or item/warehouse

8. Tip: Using My Menu
Create a your own menu for quick access to frequently used screens,
forms, reports or queries
Go To: Tools > My Menu then Add to My Menu or Organize
Create to add reports or queries to your menu
Organize to sort your menu and move or add folders

9. Don’t forget about the “Idea Place”
You can submit your ideas and suggestions to SAP
Go to: https://cw.sdn.sap.com/cw/community/ideas/sme/b1

10. Thank you for taking time to participate in the SAP
Business One User Group Meeting.
Please take a few minutes to respond to our survey
and provide us with feedback and suggestions going
forward.
o We are always looking for new clients to work with. And we would like
to find more clients and partners like you – companies that are
engaged, smart, and focused on their future.
o Can you help us out by referring LBSi to someone who could benefit
from our services?

11. Next Meetings:
o Tuesday, Sept 11, 2012
o Financial Report Templates
o Tuesday, Oct 9, 2012
o TBD

12. Long Business Systems, Inc. (LBSi)
Cleveland – Columbus – Cincinnati –Pittsburgh
Presentation by Vicki Smith, contact the following for
further information:
Keith Taylor, Vice President
email: keith@lbsi.com
Phone: 440-846-8500 ext 26
www.lbsi.com