A Working Capital Hub Best Practice Manual
Forecast to Fulfill -
Working Capital Hub's
Self Assessment
Framework
Author: Alexander Flach
Last updated: August 13, 2025
Table of Content
- Product Management
- Forecasting & Demand Management
- Capacity & Supply Planning
- Sales & Operations Planning (S&OP)
- Production Planning & Execution
- Inventory Management
- Footprint & Logistics
Introduction
The Cash Conversion Cycle is often approached through one of three separate processes, namely Purchase to Pay, Forecast to Fulfill and Order to Cash.
How well a company manages these processes has a direct impact on its Operating Working Capital requirements and cashflow performance.
Forecast-to-Fulfill (F2F) covers the end-to-end process of predicting customer demand and ensuring timely delivery of products or services. Key steps in this process include demand forecasting, inventory planning, procurement, production scheduling, and order fulfillment.
The Forecast-to-Fulfill process is critical for supply chain efficiency and customer satisfaction, as it directly impacts inventory management, operational costs, and service levels.
By streamlining each phase – from accurate demand forecasting to seamless order fulfillment – companies can minimize stockouts and overstock situations, optimize resource utilization, and deliver products on time.
What is the Forecast-to-Fulfill Cycle?
The Forecast-to-Fulfill (F2F) cycle describes the end-to-end process of planning, aligning, and executing demand and supply activities - from the initial sales forecast to delivering the finished product or service to the customer.
It is a cross-functional cycle that integrates sales, operations, procurement, production, logistics, and finance, making it a cornerstone of efficient working capital and supply chain performance.
Why the Forecast-to-Fulfill Cycle Matters
A strong F2F process directly impacts both operating working capital and business performance:
- Right-sizes capacity & assets → improves utilization of plants, warehouses, and equipment by aligning capacity to real demand.
- Optimizes delivery performance & service level → ensures products are available when customers need them, without costly overstock.
- Reduces cost & waste → minimizes rework, urgent shipments, and inefficient resource use.
- Improves liquidity → prevents excess cash being tied up in inventory and accelerates order-to-cash cycles.
- Strengthens resilience → allows quick response to demand shifts, supply disruptions, or market changes.
- Enhances decision-making → provides visibility across functions, aligning sales, operations, and finance around the same data.
- Supports sustainability → reduces unnecessary transport, energy use, and waste in the supply chain.
When executed effectively, the Forecast-to-Fulfill cycle is not just an operational routine - it is a strategic enabler of growth, efficiency, and financial health
Forecast to Fulfill - Self Assessment Framework
Unlock the full potential of your Forecast to Fulfill process with Working Capital Hubs’ self-assessment framework.
This excel-based tool helps you evaluate each stage of your Forecast to Fulfill workflow – from strategy to execution and follow-up – identifying strengths, gaps, and areas for improvement.
Rate your organization's performance on each sub-category on a 4 graded scale ranging from: Not at all to Complete.
This will help you identify your problem areas, as well as understand where your strengths lie.
Gain control over your demand and supply planning cycle efficiency and streamline operations with insights designed to enhance your Forecast to Fulfill maturity.
Areas of Review in Working Capital Hub's F2F Self Assessment Framework
1. Product Management
1.1. Product Life Cycle (PLC) Management
- A structured PLC policy and process in place guiding product development, growth, and discontinuation.
- Policy guidelines are aligned with overall business goals and market trends.
- Robust tools and dedicated cross-functional teams (e.g., R&D, sales, production) in place to ensure efficient workflows and seamless execution.
- A structured PLC policy and process in place guiding product development, growth, and discontinuation.
- Policy guidelines are aligned with overall business goals and market trends.
- Robust tools and dedicated cross-functional teams (e.g., R&D, sales, production) in place to ensure efficient workflows and seamless execution.
1.2. Bill of Material (BoM) Management
- Accurate Bills of Materials (BoMs), including material requirements and standard costs, are maintained and continuously updated for each SKU (Stock Keeping Unit).
- BoM revisions are documented and effectively communicated to all relevant stakeholders across the organization.
- BoMs are seamlessly integrated with key systems such as ERP (Enterprise Resource Planning) and MRP (Material Requirements Planning) to ensure alignment and efficiency.
- Accurate Bills of Materials (BoMs), including material requirements and standard costs, are maintained and continuously updated for each SKU (Stock Keeping Unit).
- BoM revisions are documented and effectively communicated to all relevant stakeholders across the organization.
- BoMs are seamlessly integrated with key systems such as ERP (Enterprise Resource Planning) and MRP (Material Requirements Planning) to ensure alignment and efficiency.
1.3. SKU
Rationalization
- Demand profiles and profitability by SKU are continuously analyzed and evaluated, providing critical input to the Product Life Cycle (PLC) process.
- Clear guidelines are established and actively enforced to determine when a product should be replaced or discontinued.
- Structured processes and guidelines are in place to ensure that discontinued or replaced products are effectively phased out and removed from the assortment.
- Demand profiles and profitability by SKU are continuously analyzed and evaluated, providing critical input to the Product Life Cycle (PLC) process.
- Clear guidelines are established and actively enforced to determine when a product should be replaced or discontinued.
- Structured processes and guidelines are in place to ensure that discontinued or replaced products are effectively phased out and removed from the assortment.
2. Forecasting &
Demand Management
2.1. Forecasting & Demand Planning
- Formalized process in place to ensure sales forecasts and demand plans are regularly generated using the best available historical data and market insights.
- Sales forecasts and demand plans are separate from the overall sales plan and provide an unbiased view of gross demand (i.e., without accounting for current inventory levels).
- The time horizons, frequency, and level of granularity of the forecasts are aligned with operational demand planning requirements and serve as key inputs to recurring S&OP (Sales and Operations Planning) meetings.
- Formalized process in place to ensure sales forecasts and demand plans are regularly generated using the best available historical data and market insights.
- Sales forecasts and demand plans are separate from the overall sales plan and provide an unbiased view of gross demand (i.e., without accounting for current inventory levels).
- The time horizons, frequency, and level of granularity of the forecasts are aligned with operational demand planning requirements and serve as key inputs to recurring S&OP (Sales and Operations Planning) meetings.
2.2. Tools & System Support
- Advanced tools and technologies (e.g., predictive analytics or AI) is used to enhance forecasting capabilities.
- The forecasting and demand planning tool can handle various level of granularity (e.g., SKU, region, time horizon) and accommodate scenario planning.
- Forecasting and demand planning tools are integrated with key systems like ERP or supply chain management tools.
- Advanced tools and technologies (e.g., predictive analytics or AI) is used to enhance forecasting capabilities.
- The forecasting and demand planning tool can handle various level of granularity (e.g., SKU, region, time horizon) and accommodate scenario planning.
- Forecasting and demand planning tools are integrated with key systems like ERP or supply chain management tools.
2.3 Control &
Follow-up
- Forecasts and demand plan accuracy are tracked and reviewed regularly, with updates made to reflect real-time changes in customer behavior or market conditions.
- Feedback loops are in place to identify forecasting errors and implement corrective actions.
- Forecasts and demand plan accuracy are tracked and reviewed regularly, with updates made to reflect real-time changes in customer behavior or market conditions.
- Feedback loops are in place to identify forecasting errors and implement corrective actions.
3. Capacity & Supply Planning
3.1. Capacity
Planning
- A formalized process (e.g., Integrated Business Planning) is in place to evaluate future capacity requirements based on the overall business plan, updated forecasts, and current supply chain conditions and constraints.
- Current resource capacity constraints, including labor, equipment, and facilities, are thoroughly mapped and understood.
- Strategies and contingency plans, such as capacity buffers, adding shifts, outsourcing, or capital investments, are defined and readily available for both short- and long-term capacity adjustments.
- A formalized process (e.g., Integrated Business Planning) is in place to evaluate future capacity requirements based on the overall business plan, updated forecasts, and current supply chain conditions and constraints.
- Current resource capacity constraints, including labor, equipment, and facilities, are thoroughly mapped and understood.
- Strategies and contingency plans, such as capacity buffers, adding shifts, outsourcing, or capital investments, are defined and readily available for both short- and long-term capacity adjustments.
3.2. Supply
Planning
- A formalized process is in place to ensure supply plans are generated using the latest demand plans, available capacity, inventory levels, and service level requirements, and serve as key input to recurring S&OP (Sales and Operations Planning) meetings.
- Supply plans are aligned with procurement to confirm material availability, considering replenishment lead times and potential supply chain risks.
- A formalized process is in place to ensure supply plans are generated using the latest demand plans, available capacity, inventory levels, and service level requirements, and serve as key input to recurring S&OP (Sales and Operations Planning) meetings.
- Supply plans are aligned with procurement to confirm material availability, considering replenishment lead times and potential supply chain risks.
3.3 Tools & System Support
- Available systems provide visibility of inventory levels, capacity and production schedules across multiple locations.
- Advanced tools and technologies (e.g., workflow and capacity planning) is used to enhance supply planning capabilities.
- Demand plans are automatically converted to material requirements, based on latest available bill of materials (BoM).
- Available systems provide visibility of inventory levels, capacity and production schedules across multiple locations.
- Advanced tools and technologies (e.g., workflow and capacity planning) is used to enhance supply planning capabilities.
- Demand plans are automatically converted to material requirements, based on latest available bill of materials (BoM).
4. Sales & Operations Planning
4.1. S&OP
Process
- A formalized S&OP process is in place, with meetings held at regular intervals and cross-functional participation from Sales, Production, Purchasing, Logistics, and Finance.
- The S&OP process reviews customer demand and supply resources, delivering a consensus plan across an agreed rolling horizon.
- The S&OP meetings also routinely evaluate the execution of the consensus plan and adjust plans as needed based on outcomes.
- A formalized S&OP process is in place, with meetings held at regular intervals and cross-functional participation from Sales, Production, Purchasing, Logistics, and Finance.
- The S&OP process reviews customer demand and supply resources, delivering a consensus plan across an agreed rolling horizon.
- The S&OP meetings also routinely evaluate the execution of the consensus plan and adjust plans as needed based on outcomes.
4.2. Decision Making & Conflict Resolution
- All agreed-upon plans align with overall business strategy, and conflicts or disagreements are resolved collaboratively with focus on achieving the best outcome of the business.
- All S&OP meeting decisions are documented, with clear ownership and timelines assigned for action items.
- All agreed-upon action items are tracked and followed up in subsequent meetings.
- All agreed-upon plans align with overall business strategy, and conflicts or disagreements are resolved collaboratively with focus on achieving the best outcome of the business.
- All S&OP meeting decisions are documented, with clear ownership and timelines assigned for action items.
- All agreed-upon action items are tracked and followed up in subsequent meetings.
4.3 Follow-up &
Control
- Relevant S&OP metrics, such as forecast accuracy, service levels, inventory, capacity utilization and plan attainment, are reviewed and discussed during S&OP meetings.
- Deviations from plans or targets are identified and addressed as part of the S&OP process, with corrective actions agreed upon, implemented, and followed up.
- Relevant S&OP metrics, such as forecast accuracy, service levels, inventory, capacity utilization and plan attainment, are reviewed and discussed during S&OP meetings.
- Deviations from plans or targets are identified and addressed as part of the S&OP process, with corrective actions agreed upon, implemented, and followed up.
5. Production Planning & Execution
5.1. Production Planning & Scheduling
- Formalized process in place for production planning and scheduling, including frozen time horizons (where no changes are allowed).
- Production plans and scheduling are aligned with agreed consensus plan, with little or no changes to volume or product type.
- Critical parameters such as base quantities, set-up times, lead times and bottle necks are understood and actively used in production planning and scheduling.
- Formalized process in place for production planning and scheduling, including frozen time horizons (where no changes are allowed).
- Production plans and scheduling are aligned with agreed consensus plan, with little or no changes to volume or product type.
- Critical parameters such as base quantities, set-up times, lead times and bottle necks are understood and actively used in production planning and scheduling.
5.2. Production
- Unplanned downtime of production assets are minimized through proactive maintenance and effective scheduling.
- Robust quality control measures in place to address issues early in the process. Production output generally meets quality standards with minimal rework or defects.
- Continuous improvement initiatives are common to enhance production reliability, throughput and quality.
- Unplanned downtime of production assets are minimized through proactive maintenance and effective scheduling.
- Robust quality control measures in place to address issues early in the process. Production output generally meets quality standards with minimal rework or defects.
- Continuous improvement initiatives are common to enhance production reliability, throughput and quality.
5.3. System Support, Follow-up & Control
- Production planning software is in place, integrating inventory, sales, and production data.
- Relevant metrics, such as Overall Equipment Effectiveness (OEE), capacity utilization, plan attainment, and plan stability, are visibly displayed on performance boards, and reviewed and discussed during daily and weekly planning and production meetings.
- All productivity targets are defined and set to avoid incentivizing production volumes above planned levels.
- Production planning software is in place, integrating inventory, sales, and production data.
- Relevant metrics, such as Overall Equipment Effectiveness (OEE), capacity utilization, plan attainment, and plan stability, are visibly displayed on performance boards, and reviewed and discussed during daily and weekly planning and production meetings.
- All productivity targets are defined and set to avoid incentivizing production volumes above planned levels.
6. Inventory Management
6.1. Product Categorization
- Differentiated stock holding and replenishment strategy and service level requirements set by SKU category, where parameters are defined based on e.g., demand profile, volume and value (e.g., ABC, XYZ).
- Formalized process in place to ensure inventory replenishment parameters such as lead time, batch sizes, production rates and minimum order quantities (MOQ) are continuously updated to reflect reality.
- Formalized process in place to ensure planning assumptions such as re-order points, re-order frequencies, and safety stock requirements are continuously reviewed and updated.
- Differentiated stock holding and replenishment strategy and service level requirements set by SKU category, where parameters are defined based on e.g., demand profile, volume and value (e.g., ABC, XYZ).
- Formalized process in place to ensure inventory replenishment parameters such as lead time, batch sizes, production rates and minimum order quantities (MOQ) are continuously updated to reflect reality.
- Formalized process in place to ensure planning assumptions such as re-order points, re-order frequencies, and safety stock requirements are continuously reviewed and updated.
6.2. SLOB
Management
- Integrated real-time inventory management system is used to monitor and identify slow moving and obsolete stock (SLOB).
- Documented and applied clearance processes are in place.
- Sales incentive structures include performance on SLOB clearance.
- Integrated real-time inventory management system is used to monitor and identify slow moving and obsolete stock (SLOB).
- Documented and applied clearance processes are in place.
- Sales incentive structures include performance on SLOB clearance.
6.3. Inventory Targets & Incentives
- Integrated real-time inventory management system with automated replenishment alerts is used to manage inventory mix and levels.
- Relevant inventory management metrics, such as days inventory outstanding (DIO), service level, SLOB%, stock out rates and cassation are reviewed and discussed during planning meetings.
- Inventory targets set and continuously monitored and updated.
- Inventory records are accurate, regularly updated, and reconciled with physical stock.
- Integrated real-time inventory management system with automated replenishment alerts is used to manage inventory mix and levels.
- Relevant inventory management metrics, such as days inventory outstanding (DIO), service level, SLOB%, stock out rates and cassation are reviewed and discussed during planning meetings.
- Inventory targets set and continuously monitored and updated.
- Inventory records are accurate, regularly updated, and reconciled with physical stock.
7. Footprint & Logistics
7.1. Warehouse Structure & Location
- Warehouses are positioned at strategic locations to balance proximity to demand centers and cost efficiency.
- Warehouse layout and processes are optimized for efficient picking, packing and storage.
- Inventory storage systems, such as shelving and pallets, are designed to maximize space utilization, optimize first-in-first-out (FIFO) and reduce handling time.
- Warehouses are positioned at strategic locations to balance proximity to demand centers and cost efficiency.
- Warehouse layout and processes are optimized for efficient picking, packing and storage.
- Inventory storage systems, such as shelving and pallets, are designed to maximize space utilization, optimize first-in-first-out (FIFO) and reduce handling time.
7.2. Transportation
- Transportation routes and schedules are optimized to minimize lead times and delivery costs.
- Contingency plans are in place to manage delays, disruptions, or unexpected demand spikes.
- Any third-party logistics (3PL) providers, if used, are continuously evaluated for cost-effectiveness and service quality.
- Transportation routes and schedules are optimized to minimize lead times and delivery costs.
- Contingency plans are in place to manage delays, disruptions, or unexpected demand spikes.
- Any third-party logistics (3PL) providers, if used, are continuously evaluated for cost-effectiveness and service quality.
7.3. System Support, Follow-up & Control
- Warehouse and logistics planning systems are integrated with inventory management systems to synchronize stock updates.
- Transportation, warehousing, and handling costs are regularly tracked and analyzed for potential improvements.
- Warehouse and logistics planning systems are integrated with inventory management systems to synchronize stock updates.
- Transportation, warehousing, and handling costs are regularly tracked and analyzed for potential improvements.
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