Forecast accuracy is a way to evaluate whether the forecasts made are aligned with actual sales. The objective is to continuously improve the accuracy of these forecasts.
Forecast accuracy is a broad concept, and its calculation can vary greatly from one company to another, or even from one person to another. To address this, Pawa provides a configuration option that allows you to create your own forecast accuracy metric, while setting parameters for these measurements.
Go to Administration.
Click on Configurations (Forecast)
Scroll down to view the Forecast Accuracy section
Click on the + icon to the right of the title
Fill in the parameters to determine the desired granularity between actual sales and forecasts.
In the dropdown menu under Forecast Metric, you will find several options:
Monthly Forecasts with Lag (represents forecasts made for the same periods)
Daily Forecasts with Lag
Forecasts - Generated
In the example below, we will select Monthly Forecasts with Lag.
Select the tag. The Current tag measures, each month, the actual sales versus the sales predicted one month earlier.
Forecast Increment Transaction Type: Choose the two transactions you want to sum and compare with the current measurement
Lag Scale: Choose between a daily or periodic lag. Then, enter the desired number of days or periods in the field on the far right.
Targeted Dimensions: A wide range of dimension options are available. Select those that best fit your needs. Multiple collections can be added simultaneously.
Finally, click Save to create your new metric.
You can then view your different forecast accuracy metrics, each configured according to your specific needs.
