Most manufacturing forecasts are built once a year, then adjusted as needed. Production does not follow that schedule. Orders shift, material costs change, and capacity moves faster than the budget can keep up. What starts as a plan quickly becomes a reference point, not a decision-making tool.
That gap creates pressure across the business. Sales projections do not align with production capacity. Inventory builds ahead of demand and ties up cash. Margin performance varies across product lines without clear visibility into why. The issue is not effort, it is structure. A production environment requires a forecast that reflects how the business actually operates. Duffy Kruspodin outlines the five drivers that determine whether your forecast supports production decisions or simply documents results.
General Disclosure: The information provided in this article is for general informational purposes only and does not constitute professional accounting, tax, or legal advice. Laws and regulations are subject to change and may vary based on specific facts or jurisdictions. Presentation of this information is not intended to create, and receipt does not constitute, an accountant-client relationship. Readers are advised not to act upon this information without seeking the services of a qualified professional.
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