Forecasting Process for Predicting Container Volumes in the Shipping Industry

Abstract

Abstract In an industry that is fast moving, a company’s ability to align to market changes has becoming a major competitive factor. Forecasting of future outcomes has thus become a necessity for companies to prepare for uncertainties. The shipping industry is an industry characterized by financial turbulence and ever- shifting demand. In order to adapt to changing trends and enhance operational management it is therefore essential for companies to implement proper forecasting processes. By understanding and implementing a well functioning forecasting process companies can increase their forecast accuracy, thus reduce their stock outs and increase their customer satisfaction. The purpose of this paper was to evaluate the existing forecasting process at company X in order to identify and propose an improved forecasting process for predicting container volumes. The research was based on a case study, where the aim was to create a detailed and in- depth understanding of the subject. To identify the answer for the research question various forecasting processes suggested by the literature have be investigated. Based on presented literature a new forecasting process has been created and suggested for implementation by company X. The implementation of a forecasting process is essential for company X in order to adapt to continuously changing trends, improve their performance and strengthen their competitive position. The design of a new forecasting process for predicting container volumes will allow company X to reach sustainable results.