The e2open white paper explains why forecast accuracy is critical to financial performance and how organizations can improve it. Accurate forecasts directly influence key metrics such as working capital, return on capital, and net operating profit. By improving accuracy, companies can reduce excess inventory held to buffer uncertainty, lowering cash tied up in stock and decreasing overall asset requirements. Better forecasts also support higher service levels, reduced shortages, and more efficient operations. The paper shows that forecast accuracy is not just a planning metric, but a core business driver that strengthens profitability, capital efficiency, and long‑term shareholder value when continuously measured and refined.

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