What is opportunity and forecast management for automotive suppliers?
Defining opportunity and forecast management.
Opportunity and forecast management for automotive suppliers is the process of tracking potential revenue, probability, timing, and margin from early commercial discussions through program execution. It ensures forecasts reflect reality, not optimism.
Without disciplined opportunity and forecast management, suppliers overcommit resources and underdeliver margin.
How opportunity and forecast management works.
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Define what qualifies as a real opportunity
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Assign probability, value, and timing based on evidence, not intuition
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Continuously update forecasts as assumptions change
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Align Sales forecasts with Finance expectations
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Track forecast accuracy over time Establish the original pricing and cost assumptions at quote approval
Example of opportunity and forecast management.
A supplier forecasts a new OEM award based on verbal assurance. Engineering resources ramp early, but sourcing delays push SOP by six months. The forecast remains unchanged, distorting revenue and capacity planning.
Common mistakes automotive suppliers make.
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Treating all opportunities as equal
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Freezing forecasts too early
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Separating Sales forecasts from financial planning
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Failing to track forecast accuracy Relying solely on month-end financials to identify margin loss
How Campfire solves this.
Campfire creates a shared forecast grounded in assumptions, probability, and execution reality, aligning Sales optimism with financial discipline.
#faq
Frequently asked questions.
Is forecasting just a Sales responsibility?
No. Accurate forecasting requires Finance and Operations alignment.
Why do forecasts drift over time?
Because assumptions change, but forecasts aren’t updated.
How often should forecasts be reviewed?
Continuously, not just monthly.