NEWS RELEASE February 2018
Advanced Forecasting for Individual Regions Now Available
The combust, flow and treat markets are undergoing a sea change due to utilization of the Industrial Internet of Wisdom (IIoW) to empower the Industrial Internet of things (IIoT). One of the approaches to navigating this sea change is a five-step program, explained at www.mcilvainecompany.com
The first step is Advanced Forecasting. The goal is to create reliable forecasts which will guide local sales personnel as well as top management. This means creating forecasts for the relevant products in each industry in each sales territory. McIlvaine is introducing a regional purchase option which will allow a company to move forward without a commitment to a worldwide program.
The world can be divided into 80 individual segments each of which provides a significant market opportunity. The entities are then aggregated by sub region, region, continent and summarized with world totals as explained at Decisive Classification.
Small countries in sub regions are grouped into more significant entities. An example is the following Western European countries which are grouped into Other Western Europe which is one of the 80 entities.
Andorra, Faroe Islands, Gibraltar, Greenland, Guernsey, Iceland, Isle of Man, Jersey, Lichtenstein, Luxembourg, Malta, Monaco, San Marino, Vatican
The U.S. and China each represents 15-25% of the market whereas the average country represents only 1.25% of the market. Therefore, these two countries can be further segmented in to regions or states and provinces. The regional segmentation results in individual markets ranging from 1-3% of the world totals. As a result, individual territory difference is kept under one order of magnitude.
Due to consolidation in the end user market along with centralization of decision making due to IIoW empowered IIoT the market is shifting so that most of the purchasing decisions for high performance products will be made by corporate and not the individual plants. Therefore, it is also necessary to forecast purchases for all major customers by corporate entity rather than geography.
Advanced forecasting is available for each type of combust, flow, and treat equipment, consumables and process systems. Due to the magnitude of the adjustment needed to navigate the sea change McIlvaine is offering a staged program. To introduce this approach McIlvaine is making available individual excel files based on region for pumps, valves and IIoT products including guide, control and measure further divided into liquids, air/gases and free flowing solids. Excel files with forecasts for purchases by corporate entities can also be purchased separately. Therefore, a regional sales manager can move forward without needing the commitment of the other regions. The sales manager for OEM accounts can just purchases the forecasts of purchases by large customers.