Sales Forecast is an iterative estimate of future sales that ultimately informs corporate financial guidance and provides our supply and manufacturing partners with correct signals to ensure we have the appropriate product mix to support customer demand for a certain fiscal period.
Sales Budget is a one-time yearly estimate of sales that ultimately informs corporate financial guidance and provides our supply and manufacturing partners with correct signals to ensure we have the appropriate product mix to support customer demand for a certain fiscal year.
At Illumina, we use TM1 to input and report on forecast numbers. TM1 also includes the following data: historical actuals (shipments), orders and opportunities.
An accurate sales forecast is essential to providing our Supply and Manufacturing partners with the correct signals to ensure we have the appropriate product mix to support customer demand.
Forecasting is completed 3 times during each quarter during months 1, 2 and 3. Inputs will be made for the current quarter and the 4 following quarters during each cycle. Inputs are made for a territory's Key Accounts as well as an "Other" input for the remainder of the territory's expected activities.
- To provide realistic performance expectations to internal and external stakeholders
- To capture anticipated inventory demand to ensure products are available to meet customer needs
- To better understand high level business direction
Current Territory Forecast
This is the live forecast in TM1 the team utilizes when making forecast inputs & adjustments. M1, M2 and M3 are snapped based on the Territory Current forecast at the time of the snap.
M1 (Week 1)
The emphasis is on capturing an accurate forecast for the current quarter. This input is the TAM’s opportunity to reflect expected performance for the quarter. The Month 1 forecast version will be used to measure a territory’s expected contribution and performance for the current quarter.
M1 Consensus Forecast
A snapped version of the M1 forecast after it has gone through top-down adjustments. This version is utilized by leadership & commercial finance and is the reflective of the business commitment for the period.
M2 (Week 5)
Adjustments are made to the current quarter and future quarter forecasts to reflect the reality of the expected performance within a territory. The goal is to refine the expectation for the remainder of the quarter. Adjustments to future quarters are also made as applicable.
M3 (Week 9)
Adjustments for the current quarter are made to reflect forecast for the remainder of the current quarter. Closer attention to the next fiscal quarter is also a primary focus of this cycle.
During the third quarter of every year, a forecast is entered for the following fiscal year. The ‘Planning Cycle,’ also known as Budget, takes place in October and November with numbers snapped in the beginning of January, along with the Month 1 consensus.
- Forecast data in TM1 is always real-time
- Suggested Browser: Google Chrome
- VPN Access: must be on VPN to access
- Data Refresh: 3 times a day (10:00 am, 09:00 pm, 03:00 am GMT)
- Forecast data in Tableau is only visible at the territory level
- Access: Determined by ETM assignment
Click here to learn more about Sales Forecasting in Europe
