Sales Forcasting and Organizational Performance in Bakery Industry in Nigeria

Abstract:

Planning is an integral part of a manager’s job. If uncertainties cloud the planning horizon, it can be quite difficult for a manager to plan effectively. Sales forecasts play such an important role in the planning process because they enable managers to anticipate the future and to plan accordingly. Firms must anticipate and plan for future demand so that they can react immediately to customers’ orders as they are made. The ability to accurately make sales forecast enables firms to control costs by leveling their production quantities, rationalizing their transportation and planning for efficient logistics operations. A great number of organizations have failed in their sales forecast planning and process that provide them the required and accurate sales forecasting result. The problems associated with sales forecasting planning and process, and the activities of the sales people in enhancing the sales forecasting decisions of the organization have been difficult for some organizations to identify. It is on this background that this work is laid. Therefore, this study examines the impact of forecasting on organizational performance in the bread making industry. Both qualitative and quantitative research methodologies were used to analyze data gathered from the field. From the result obtained, conclusions were made to the fact that all the dimensions of sales forecasting have a positive and significant effect on the dimensions of organizational performance. The study thus concluded generally that sales forecasting is a viable and veritable tool in measuring and improving organizational performance in the bread making industry in Nigeria. The study therefore recommended that organizations should have a good sales plan in place as it will not only help them to formulate a strategic plan but it will also put them in control by helping them determine their product’s current status, where they want to take it, and how they will get there. Also, organizations should develop effective and efficient sales process that provides them with data on what is happening in the sales pipeline.