Method
Hierarchical reconciliation
Make local plans add up to executive truth across every level.
Hierarchical reconciliation explained
What it is
Reconciliation makes forecasts coherent across a hierarchy (SKU, store, region, channel and time) so the parts sum to the whole.
Why it matters
When teams forecast at different levels independently, the numbers disagree and people spend time deciding which figure to use.
Where planning teams fail
Bottom-up and top-down plans diverge; reconciling them by hand is slow and can obscure why the figures differ.
How RabbitHawk applies it
RabbitHawk reconciles forecasts statistically across the full hierarchy, so merchandising, supply chain and finance plan from one coherent set of numbers.
Related methods
Keep exploring
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Represent ranges and likelihoods alongside the central forecast.
- forecast bias diagnostics
Forecast bias diagnostics
Find the systematic errors quietly distorting your plans.
- context aware forecasting
Context-aware forecasting
Bring new human and agent-detected evidence into the forecast.
Apply this to your data
See how RabbitHawk would use this method to improve your decisions.
Scope a forecasting diagnostic