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L.L. Bean Forecasting Improvements

L.L. Bean could improve its forecasting process in several ways: by continuously updating forecasts based on the latest data; involving experts using a Delphi method to better predict hard-to-forecast customer behavior; introducing catalogs earlier to allow more time for second orders; and sending questionnaires to gain better consumer insights, especially for best-selling items. Additionally, reducing foreign vendor dependence and keeping stockpiles of common raw materials could improve the supply chain's flexibility to respond to updated forecasts.

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339 views1 page

L.L. Bean Forecasting Improvements

L.L. Bean could improve its forecasting process in several ways: by continuously updating forecasts based on the latest data; involving experts using a Delphi method to better predict hard-to-forecast customer behavior; introducing catalogs earlier to allow more time for second orders; and sending questionnaires to gain better consumer insights, especially for best-selling items. Additionally, reducing foreign vendor dependence and keeping stockpiles of common raw materials could improve the supply chain's flexibility to respond to updated forecasts.

Uploaded by

Siddharth
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Question 5- What should L. L. Bean do to improve its forecasting process?

There could be numerous improvements that L.L Bean can incorporate in its process. As we
read in earlier cases as well that the fashion industry is a fast-changing industry and product
demands change very rapidly. So only using the past data to predict future is not enough.
They should be continuously be updating their forecasts based on latest data as well.
Secondly in is mentioned in the case that “customer behavior is very hard to predict”, so what
it can do is that it may involve experts in the whole process, with experts and the data
combined they would be better able to forecast. So, a Delphi method is more appropriate
here. Another important thing to note is that the new catalogue is introduced in August,
which gives the customers little time to place a second order. L.L bean should try to introduce
catalogues earlier so that the demand could be more easily assessed and a second
commitment could be made. Also, with the catalogues we can send questionaries’ that could
be optional and, in this way, we can gain better insights inside the consumer behavior and
thus predict demand in a better way. This should especially be done for “never outs” and sent
to regular customers and once we know how customers rank the new products in comparison
to the new products, we can adjust our plans.
But a long-term plan should be to reduce dependence on foreign vendors and have more local
vendors who can supply quickly. Also, we can convince suppliers to keep stocks of raw
materials that are same for all like zips, buttons shoe laces etc. In this way the response will
be faster and L.L bean can plan a second order too based on the new forecast. So, the whole
supply chain process needs to be improved along with forecasting accuracy improvements.

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