Exploring the Forecasting Process in a Fast Moving Consumer Goods Company.

Canduela, Jesus; Raeside, Robert; Cabras, Ignazio

Abstract

The aim of this paper is to explore the forecasting function in a FMCG company, in order to understand actors’ functions and behaviour within the system and the impact of these on forecasting performances. The study intends to expand knowledge related to forecasting performances in complex situations and to address the “theory-practice gap”. The authors develop their study by using the case study of a major UK brewery, by analyzing the company’s documents and by conducting a participatory exploration within the company. Ten key personnel were approached and interviewed with in-depth semi-structured interviews, while four pivotal managers took part in unstructured interviews. Results provide empirical insights about how the forecasting function is perceived in terms of usefulness, the process and also with regard to the environmental elements that may have an impact on its performance. Findings suggest that changes in the marketplace for FMCG companies, and the ever-increasing negotiating power of large customers in particular, have shaped their forecasting strategy. Recommendations are made for FMCG companies to focus less on forecasting at SKU or product levels and to develop more reactive systems, more responsive to customer demand but with reduced focus on building up high stock levels.

Citation

Canduela, J., Raeside, R., & Cabras, I. (2014). Exploring the Forecasting Process in a Fast Moving Consumer Goods Company. Journal of business and economics, 5, 1727-1738. https://doi.org/10.15341/jbe%282155-7950%29/10.05.2014/002

• Journal Article Type: Article
• Publication Date: 2014
• Deposit Date: Jan 26, 2015
• Print ISSN: 2155-7950
• Peer Reviewed: Peer Reviewed
• Volume: 5
• Pages: 1727-1738
• DOI: https://doi.org/10.15341/jbe%282155-7950%29/10.05.2014/002
• Keywords: fast moving consumer goods; forecasting process; interaction among departments; brewery industry
• Public URL: http://researchrepository.napier.ac.uk/id/eprint/7515