Forecasting Strategy and Implementation

Business Issue:

Historically, all forecasting and purchasing activities had been based on revenue projections and were done independently (i.e., Operations provided revenue estimates to Management, and Purchasing re-created this information to use in establishing supplier relationships). This division of an Energy-sector product and services supplier needed to identify ways to improve operational effectiveness. The project team recommended a global, integrated, product-usage based forecast to eliminate redundant activity, improve product availability, and leverage global consumption volumes with suppliers to obtain lower unit costs.


  • Implemented a global, product-based forecasting tool to predict product consumption for top 35 products representing 80% of product spend across all regions; features include:
    • Options for data capture based on revenue, rig-specific or geography
    • Automated consolidation and rollup
    • Global view of product consumption for upcoming 12 months
  • Defined the information sharing approach, allowing information to be updated quarterly and shared with Purchasing
  • Enabled forecasting to be used in annual negotiations with suppliers, improving availability and reducing unit costs


  • Annual savings estimated to be $3M to $5M

Implementation of a global, product-based forecasting tool for an $800M division of a $9B Provider of Equipment and Services to the Energy Industry

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At Himes Consulting Group, we don’t believe we have all the answers. We know that the right solutions to improve your business come from conversation and collaboration. We have the experience to learn your business and partner with you to create process redesign programs that fit your team.