Swartz: Granular conversions of top-down dollar sales forecasts are always wrong
Mike Swartz · a16z Podcast | Where's My Stuff? -- The Lowdown on Logistics and Ops · Jan 2, 2019 · at 53:49
Mike Swartz, an operations expert, discusses the fundamental disconnect between merchandising sales forecasts and operational capacity planning during an a16z panel on logistics.
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“You get a sales plan that's expressed in dollars, and then somebody tries to convert that to orders, and then they may extrapolate that to units, and they may take a monthly sale plan and then try to water it down to a weekly or a daily or sometimes by shift plan. It's always wrong. By definition, it's always wrong.”
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