Identifying problems in forecasting consumer demand in the fast moving consumer goods sector

The ability to forecast consumer demand accurately is of great importance to companies in the consumer market. The food industry, in particular, views consumer availability as the cornerstone of their business. However, many companies concede that their forecasting process does not perform as well as they would wish. A group of forecasting and demand managers from some of the leading UK food companies, with the support of Leatherhead Food RA, examined the problems associated with their functions over an 18-month period. This paper presents the key findings from their collaborative work.