Purpose -The paper aims to describe and apply a commercially oriented method of forecast performance measurement (cost of forecast error -CFE) and to compare the results with commonly adopted statistical measures of forecast accuracy in an enterprise resource planning (ERP) environment. Design/methodology/approach -The study adopts a quantitative methodology to evaluate the nine forecasting models (two moving average and seven exponential smoothing) of SAP w 's ERP system. Event management adjustment and fitted smoothing parameters are also assessed. SAP w is the largest European software enterprise and the third largest in the world, with headquarters in Walldorf, Germany. Findings -The findings of the study support the adoption of CFE as a more relevant commercial decision-making measure than commonly applied statistical forecast measures. Practical implications -The findings of the study provide forecast model selection guidance to SAP w 's 12 þ million worldwide users. However, the CFE metric can be adopted in any commercial forecasting situation. Originality/value -This study is the first published cost assessment of SAP w 's forecasting models.

Purpose -The purpose of this article is to provide a critique of SAP's enterprise resource planning (ERP) (release ECC 6.0) forecasting functionality and offer guidance to SAP practitioners on overcoming some identified limitations. Design/methodology/approach -The SAP ERP forecasting functionality is reviewed against prior seminal empirical business forecasting research. Findings -The SAP ERP system contains robust forecasting methods (exponential smoothing), but could be substantially improved by incorporating simultaneous forecast comparisons, prediction intervals, seasonal plots and/or autocorrelation charts, linear regressions lines for trend analysis, and event management based on structured judgmental forecasting or intervention analysis. Practical implications -The findings provide guidance to SAP forecasting practitioners for improving forecast accuracy via important forecasting steps outside of the system. Originality/value -The paper contributes to the need for studies of widely adopted ERP systems to critique vendor claims and validate functionality through prior empirical research, while offering insights and guidance to SAP's 12 million+ worldwide enterprise system practitioners.