Proposed PLM Strategic Framework

In order to cope with this new scenario of high SKU proliferation and short product lifespan, it is proposed to apply the PLM strategic framework developed by the 

Strategic Framework for Product Lifecycle Management Process 

Portfolio Optimization wrth Stage and Gate Approach 

New product forecast is an important capability to guarantee product availability in the early phases of introduction in the market. However, benchmarking research shows that new product forecast accuracy is only slightly above 50% on average 1 year after the launch. 

Kahn (2006) provides direction on how new product forecasting should be performed. He states that the first step is to establish the forecasting objective, as this will clarify the purpose and intent of the forecast so that a meaningful forecast can be made. Once the forecasting objective is established, consideration is needed regarding the forecasting level, time horizon, interval and form. 

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