Introduction of SCM
history and processes in the first few months after an implementation.
Forecasters and planners need to understand that the first bits of information
they get from a system might need some tweaking. If they are not warned
about the system's initial naiveté (simplicity), they will think it is useless.
In one case, just before a large automotive industry supplier installed a
new supply chain forecasting application to predict demand for a product, an
automaker put in an order for an unusually large number of units. The system
responded by predicting huge demand for the product based largely on one
unusual order. Blindly following the system's numbers could have led to
inaccurate orders for materials being sent to suppliers within the chain. The
company caught the problem but only after a demand forecaster threw out the
system's numbers and used his own. That created another problem: