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AchievingCompetitiveAdvantageThroughSupplyChainManagement
AdvancedPlanningand
SchedulingSystems
May25,2000AchievingCompetitiveAdvantagAgenda1. TheEvolutionoftheSupplyChain2. AdvancedPlanningandScheduling
Systems
2.1 HowTheyWork 2.2 TheVendors Agenda1. TheEvolutionoftheTheSupplyChainencompassesanumberofkeybusinessprocessesinvolvedinmanagingtheflowofmaterials,information,andfundsfromtheinitialsupplierstotheultimateconsumer.RetailingDeliveringDistributingProducingSupplying…theconceptofsupplychainmanagement
isrelativelysimple.
MaterialsInformation&FundsMaterialsInformation&FundsMaterialsInformation&FundsTheSupplyChainencompassesaHowever,intherealworld,multiplesuppliers,multipleplants,multipledistributionpointsandmultiplecustomerssignificantlycomplicatematerialandinformationflows...RetailingDeliveringDistributingProducingSupplyingHowever,intherealworld,mu…And,giventhatsupplychainscrossmultiplecompanies,wallshavebeenbuilt
thatpreventfullandtimelyinformationflow.RetailingDeliveringDistributingProducingSupplying…And,giventhatsupplychainBreakingdownthesewallsandintegratingthesupplychainiscritical.However,todate,mostsupplychaininitiativeshavebeeninwardlyfocused.Onlyrecently,manufacturersarebeginningtoembracethetotalsupplychainasameanstoachievingcompetitiveadvantage.Phase1-ProcessIntegration(e.g.,reengineeringtheorder-to-cashprocess).Phase2
-Intra-EnterpriseIntegration(e.g.,salesstrategiescoordinatedwithsupplychaincapabilities).Phase3
-Inter-EnterpriseIntegration(e.g.,collaborative
forecasting&replenishmentbetweenretailersandsuppliers)BreakingdownthesewallsandStage1:Separatebestofbreedapplicationsdedicatedtospecificbusinessprocesses(1970s)G/LPayrollA/PPurchaseOrder
Mgmt.OrderEntryInventoryMgmt.FinancialsManufacturingDistributionEnterpriseResourcePlanning(ERP)SupplyChainTechnologyhasevolvedoverthepastseveraldecades.Today’sERPsystemsaretransaction-based
applicationswithlimiteddecision-supportcapability.Stage3:Enterprise-wideapplications(earlytomid1990sand
stillongoing)Stage2:Suitesofintegratedapplicationsforfunctionalprocesses(1980s)Stage1:SeparatebestofbreeERPorLegacySystemsDemandPlanningProduction
Planning&
SchedulingDistribution/
Supply
PlanningTransportationPlanning/
ManagementAPSDefinitionERPorlegacyinterfaceddecisionsupporttechnologywhichusesadvancedalgorithms,(e.g.,LPs,IPs,mixed–IPs,heuristics,theory-of-constraints,etc.)tomodelsupplychainconstraintsandenableintelligentsupplychainplanning/decisionmaking.APSCharacteristicsAllowscomplexsupplychainrepresentationandrapidSCmodelreconfigurationEnablesconcurrent,dynamicplanning,and“what-if”simulationsusing
memoryresidentprocessingPossessscaleableobjectarchitecturescapableofrunninglarge
data-intensivemodelsAdvancedPlanningandSchedulingSystems(APS)AretheNextStepoftheEvolutionforProvidingDecisionSupportCapabilities.ERPorLegacyDemandProduction
AssetIntensiveSupplyChainSetup/sequencedependenciesCapabletopromiseCapacityutilizationBottleneckutilizationMaterialIntensiveSupplyChainCapable-to-promiserequirementsExcessinventoryObsolescenceChangestoordersEngineeringchangeDistributionIntensive
SupplyChainLargenumberofSKUsComplexdistribution/
transportationrequirementsExcessiveinventoryCustomerserviceWhilewetendtodrawallsupplychainsthesame,therearemanytypesofsupplychains-eachwiththeirownuniquechallenges.E.g.,Pulp&PaperE.g.,High-TechE.g.,ConsumerProductsAssetIntensiveSetup/sequenceHowDoYouKnowIfYouHaveSupplyChainManagementProblems?CustomerServiceConcerns-Customercomplaints,lossofshare,deliveryproblems,customersurprisesMaterialsManagementDifficulties-Highinventorybuffers/obsolescence,hightransportationcosts,suppliershortages,lostpurchasingdiscountsManufacturingProcessProblems-Productioninefficiencies,overcapacity,undercapacity,costgrowthPlanningDifficulties-Inaccurateforecasts,highstockouts,growingoverheadcostsObsoleteTechnology-Incompatiblesystemslinkages,inaccurate/inaccessibleinformationRevenueCycleConcerns-Lengthytimetomarket,longordercycle,distributiondelays,conflictingchanneldemandsVendorManagementProblems-Poorresponselevels,lost
growth,lackofcommitmentHowDoYouKnowIfYouHaveSuTheImportanceofSupplyChainManagementHasIncreasedSignificantlyOverthePastFewYears.Past(1995-1998)Present(1999)Future(2000+)%SurveyRespondentsRating
SupplyChainCriticaltoSuccessSupplyChainManagementis
IncreasinglyImportant25%70%91%TheImportanceofSupplyChainTheResponse:Approximately60%ofManufacturersCurrentlyHaveaMajorSupplyChainInitiativeUnderway.
However,42%are“l(fā)essthansatisfied”withthe
outcomeoftheirpreviousimprovementefforts.%SurveyRespondentsMajorSupplyChainImprovements
areUnderwayorPlannedWithin2YearsAlreadydoneWithin3-5years10%2%6%Within199913%CurrentlyUnderway59%NoPlans10%TheResponse:Approximately6AbilitytoRespondAbilitytoPredict12-18MonthsSupplyPlanDemandPlanSupply
Chain
DesignStrategic
PlanIncreasingTimeIncreasingDetailofDataTodayTransportationPlanProduction
Plan}ExcessInventory}MissedOrdersAsthePaceofBusinessContinuestoIncrease,aKeyChallengeforToday’sSupplyChainManagersIstoMakeGoodBusinessDecisions,UsingAlltheInformationThatIsAvailable,WithinaShortTimePeriod.AbilitytoRespondAbilitytoPTheSupplyPlanning(SP)
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPTheSupplyPlanning(SP)SP-InventoryPlanningInventoryPlanningGoal:DetermineoptimalinventorylevelsandlocationtoprotectdesiredcustomerservicegoalsTradeoffbetweeninventoryandservicenotunderstoodLimitedabilitytoknow
howmuchinventory,whenandwhereInabilitytoplanatasufficientlevelofdetailInabilitytoquantifytheimpactofdemandandsupplyvariabilityChallenges
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPSP-InventoryPlanningInventoSPMasterPlanningMasterPlanningGoal:Globallyoptimizeproductionplanconsideringtradeoffsofavailablecapacity,materials,costs,timeLackofvisibilityDisjointedplanningInabilitytoreconciledemandprioritieswithsupplyconstraintsInabilitytogloballyoptimizeproductionplanconsideringmultipleconstraintsPlanningdoesn’tsupportcorporateobjectivesChallenges
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPSPMasterPlanningMasterPlannSPFactoryPlanning&SchedulingFP&SchedulingGoal:OptimalexecutionoftheMasterPlantominimizecostandimprovequalityof
theplanMaterialandcapacityconstraintsnotconsideredsimultaneouslyInaccuraterepresentationofrealworldconstraintsSlow,inabilitytoreactLackofproblemvisibilityPoordeliverydatequotinginbuildtoorderChallenges
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPSPFactoryPlanning&ScheduliSP-DistributionPlanningDistributionPlanningGoal:OptimallypositioninganddeployinginventorytoachievedesiredcustomerserviceStore&DCreplenishmenthandledindependentlyLimitedabilityto
prioritizedemandPredetermined(akainflexible)distributingrulesInventorydistributedinadvanceofactualsalesChallenges
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPSP-DistributionPlanningDistCustomerBenefitsGrowth:IncreaserevenuesIncreasedmarginperformanceFinancialPerformance:ReducedinventorycostsandobsolescenceOptimaluseofavailablecapacityandinventoryReducedprocurementexpensethroughaccurateorderingImprovedCustomerServiceAndifyoudotheabove…increased
stockpriceCustomerBenefitsGrowth:SelectedAPSImplementationsbyIndustryAerospaceBellHelicopterU.S.NavyAutomotiveFordGMVolvoChemicalOccidentalChemicalNovartisMacMillanBloedelConsumerGoods(Durable)BakerFurnitureBlack&DeckerBoseHermanMillerConsumerGoods(Non-Durable)3MAultFoodsConsumerGoods(Non-Durable)CocaColaE&JGaloFritoLayHighTech3COMDellDigitalGatewaySiemensIndustrialCaseCaterpillarMercuryMarineMedicalJohnson&JohnsonBristol-MeyersSquibbMetalsTimkenSelectedAPSImplementationsbThereAreaNumberofAPSVendors.AccordingtotheGartnerGroup,i2TechnologiesandManugisticsAretheLeadersToday.DeloittecurrentlyhasestablishedAPSrelationshipswithi2,Manugistics,SynQuestandParagon.D&ThasERPpartnershipswithPeopleSoft,JDENumetrix,BaanandSAP.Source:GartnerGroup(03/26/99)NotefromS:TheTablewasdeletedduetocopyrightsconstraints.RefertotheGartnerGroupdatabaseinSforcurrentinformation.ThereAreaNumberofAPSVend1999EstimatedTotalSCMMarketShareSource:BenchmarkingPartners,Inc.1999EstimatedTotalSCMMarke1999Estimated%ShareofMarketLeadersByVerticalSource:BenchmarkingPartnersInc.1999Estimated%ShareofMark1999Estimated%GrowthbyVertical1998-1999Source:BenchmarkingPartnersInc.1999Estimated%GrowthbyVer1999AssessmentintheConsumerPackagedGoodsIndustrySource:BenchmarkingPartnersInc.1999AssessmentintheConsumeAppendixAppendixDemandPlanKEYCONCEPTSTrulyincorporatesknowledgefromvariouslevelswithinandoutsidetheorganizationProactivelycontroleventsandreducevariationsindemandforecastingSupportstop-down,bottom-upandhybridplanningapproachesMulti-dimensional,enterprisedemandplanningthatintegratessystems,processesandpeopleatmultiplelevelsINPUTConsidersstrategicgoals,inter/intra-companyobjectivesandconstrained
supplyinformationtoconstructrealisticdemandplanConsidersexternaleconomicandevents(promotions,pricingchanges,etc.)Multiplescenariocomparisonsandwhat-ifanalysisfacilitateappropriate
usestoaddvalueOUTPUTIdentifiesopportunities,formulatesstrategies,translatesthem
intoactionplansandactualexecutionsteps,andanalyzesresultsProducesrealisticforecastthatdrivesinventory,financialand
operationalplansReducessupplychaininventoryandcosts
DemandPlanKEYCONCEPTSSupplyPlanKEYCONCEPTSFacilitatesthedesignofoptimaldistributionnetworks,productionplans,
sourcingdecisions,andinventorylevelsHelpsdeterminethemostprofitablesupplychainstrategyforend-to-end
orderfulfillmentRealtime,enterprisewideandcrossenterprisevisibilityandoptimization
ofconstraintsReliablereal-timemarket,productandcustomer-allocatedcapable-to-promiseandduedatequotingINPUTConsidersconstraintsthroughoutthesupplychainatagreatlevelof
detail,enablingrapidwhat-ifsimulationsOUTPUTManufacturing,distributionandsourcingnetworkoptimization:improve
customerresponsivenessandreducecostsatthesametimeIncreasedabilitytofocusonhigh-valuestrategydecisionsthatdrive
tacticalandoperationalactivities,andresponsivenessto
changesinbusinessenvironmentShorterorderfulfillmentcycletimeLowerinventoriesOptimizedassetutilizationSupplyPlanKEYCONCEPTSProductionPlanKEYCONCEPTSProducesoptimizedandfeasiblefiniteproductionschedulebasedon
considerationofdynamicconstraintsINPUTWhat-ifanalysisATPbasedonup-to-datematerialandcapacityconstraints
Fastre-planningoforderstoaccommodatedemandvolatilityOUTPUTResourceoptimizationUtilizationimprovesby10to50%Inventoryreducedupto75%OrderLeadTimes:10to60%reductionDeliveryPerformance:25to50%improvementOrderFillRates:50to90%improvementReducedplanningcycletimefromweekstohoursProductionPlanKEYCONCEPTSTransportationPlanKEYCONCEPTSDeterminestheoptimalquantitiesofproductsallocatedtoeachdistributionwarehouseDeterminesthemosteconomicalmeansoftransportinginbound,outboundandinter-companyproductswhilemeetingservicegoals
INPUTAdjuststorequirementsforpromotions,unanticipateddemandSimultaneouslyplansfortransportation,factoryandwarehouse
sourcing,manufacturingandpurchasingOUTPUTAttainsoptimal,leastcostsolutionformaterialflowGeneratesfeasibleandcustomercentricenterprisedistributionplanAchievesclosecommunicationwithtradingpartnersonshipmentandavailabilitychangesFeasibleenterprise-widetransportationplanReal-timein-transitvisibilityTransportationPlanKEYCONCEPT1999AssessmentintheHighTech&ConsumerElectronicsIndustrySource:BenchmarkingPartnersInc.1999AssessmentintheHighTe1999AssessmentintheIndustrialDiscreteManufacturingIndustrySource:BenchmarkingPartnersInc.1999AssessmentintheIndustr1999AssessmentintheAutomotiveIndustrySource:BenchmarkingPartnersInc.1999AssessmentintheAutomot1999AssessmentintheOil&GasandCommodityChemicalsIndustrySource:BenchmarkingPartnersInc.1999AssessmentintheOil&GAchievingCompetitiveAdvantageThroughSupplyChainManagement
AdvancedPlanningand
SchedulingSystems
May25,2000AchievingCompetitiveAdvantagAgenda1. TheEvolutionoftheSupplyChain2. AdvancedPlanningandScheduling
Systems
2.1 HowTheyWork 2.2 TheVendors Agenda1. TheEvolutionoftheTheSupplyChainencompassesanumberofkeybusinessprocessesinvolvedinmanagingtheflowofmaterials,information,andfundsfromtheinitialsupplierstotheultimateconsumer.RetailingDeliveringDistributingProducingSupplying…theconceptofsupplychainmanagement
isrelativelysimple.
MaterialsInformation&FundsMaterialsInformation&FundsMaterialsInformation&FundsTheSupplyChainencompassesaHowever,intherealworld,multiplesuppliers,multipleplants,multipledistributionpointsandmultiplecustomerssignificantlycomplicatematerialandinformationflows...RetailingDeliveringDistributingProducingSupplyingHowever,intherealworld,mu…And,giventhatsupplychainscrossmultiplecompanies,wallshavebeenbuilt
thatpreventfullandtimelyinformationflow.RetailingDeliveringDistributingProducingSupplying…And,giventhatsupplychainBreakingdownthesewallsandintegratingthesupplychainiscritical.However,todate,mostsupplychaininitiativeshavebeeninwardlyfocused.Onlyrecently,manufacturersarebeginningtoembracethetotalsupplychainasameanstoachievingcompetitiveadvantage.Phase1-ProcessIntegration(e.g.,reengineeringtheorder-to-cashprocess).Phase2
-Intra-EnterpriseIntegration(e.g.,salesstrategiescoordinatedwithsupplychaincapabilities).Phase3
-Inter-EnterpriseIntegration(e.g.,collaborative
forecasting&replenishmentbetweenretailersandsuppliers)BreakingdownthesewallsandStage1:Separatebestofbreedapplicationsdedicatedtospecificbusinessprocesses(1970s)G/LPayrollA/PPurchaseOrder
Mgmt.OrderEntryInventoryMgmt.FinancialsManufacturingDistributionEnterpriseResourcePlanning(ERP)SupplyChainTechnologyhasevolvedoverthepastseveraldecades.Today’sERPsystemsaretransaction-based
applicationswithlimiteddecision-supportcapability.Stage3:Enterprise-wideapplications(earlytomid1990sand
stillongoing)Stage2:Suitesofintegratedapplicationsforfunctionalprocesses(1980s)Stage1:SeparatebestofbreeERPorLegacySystemsDemandPlanningProduction
Planning&
SchedulingDistribution/
Supply
PlanningTransportationPlanning/
ManagementAPSDefinitionERPorlegacyinterfaceddecisionsupporttechnologywhichusesadvancedalgorithms,(e.g.,LPs,IPs,mixed–IPs,heuristics,theory-of-constraints,etc.)tomodelsupplychainconstraintsandenableintelligentsupplychainplanning/decisionmaking.APSCharacteristicsAllowscomplexsupplychainrepresentationandrapidSCmodelreconfigurationEnablesconcurrent,dynamicplanning,and“what-if”simulationsusing
memoryresidentprocessingPossessscaleableobjectarchitecturescapableofrunninglarge
data-intensivemodelsAdvancedPlanningandSchedulingSystems(APS)AretheNextStepoftheEvolutionforProvidingDecisionSupportCapabilities.ERPorLegacyDemandProduction
AssetIntensiveSupplyChainSetup/sequencedependenciesCapabletopromiseCapacityutilizationBottleneckutilizationMaterialIntensiveSupplyChainCapable-to-promiserequirementsExcessinventoryObsolescenceChangestoordersEngineeringchangeDistributionIntensive
SupplyChainLargenumberofSKUsComplexdistribution/
transportationrequirementsExcessiveinventoryCustomerserviceWhilewetendtodrawallsupplychainsthesame,therearemanytypesofsupplychains-eachwiththeirownuniquechallenges.E.g.,Pulp&PaperE.g.,High-TechE.g.,ConsumerProductsAssetIntensiveSetup/sequenceHowDoYouKnowIfYouHaveSupplyChainManagementProblems?CustomerServiceConcerns-Customercomplaints,lossofshare,deliveryproblems,customersurprisesMaterialsManagementDifficulties-Highinventorybuffers/obsolescence,hightransportationcosts,suppliershortages,lostpurchasingdiscountsManufacturingProcessProblems-Productioninefficiencies,overcapacity,undercapacity,costgrowthPlanningDifficulties-Inaccurateforecasts,highstockouts,growingoverheadcostsObsoleteTechnology-Incompatiblesystemslinkages,inaccurate/inaccessibleinformationRevenueCycleConcerns-Lengthytimetomarket,longordercycle,distributiondelays,conflictingchanneldemandsVendorManagementProblems-Poorresponselevels,lost
growth,lackofcommitmentHowDoYouKnowIfYouHaveSuTheImportanceofSupplyChainManagementHasIncreasedSignificantlyOverthePastFewYears.Past(1995-1998)Present(1999)Future(2000+)%SurveyRespondentsRating
SupplyChainCriticaltoSuccessSupplyChainManagementis
IncreasinglyImportant25%70%91%TheImportanceofSupplyChainTheResponse:Approximately60%ofManufacturersCurrentlyHaveaMajorSupplyChainInitiativeUnderway.
However,42%are“l(fā)essthansatisfied”withthe
outcomeoftheirpreviousimprovementefforts.%SurveyRespondentsMajorSupplyChainImprovements
areUnderwayorPlannedWithin2YearsAlreadydoneWithin3-5years10%2%6%Within199913%CurrentlyUnderway59%NoPlans10%TheResponse:Approximately6AbilitytoRespondAbilitytoPredict12-18MonthsSupplyPlanDemandPlanSupply
Chain
DesignStrategic
PlanIncreasingTimeIncreasingDetailofDataTodayTransportationPlanProduction
Plan}ExcessInventory}MissedOrdersAsthePaceofBusinessContinuestoIncrease,aKeyChallengeforToday’sSupplyChainManagersIstoMakeGoodBusinessDecisions,UsingAlltheInformationThatIsAvailable,WithinaShortTimePeriod.AbilitytoRespondAbilitytoPTheSupplyPlanning(SP)
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPTheSupplyPlanning(SP)SP-InventoryPlanningInventoryPlanningGoal:DetermineoptimalinventorylevelsandlocationtoprotectdesiredcustomerservicegoalsTradeoffbetweeninventoryandservicenotunderstoodLimitedabilitytoknow
howmuchinventory,whenandwhereInabilitytoplanatasufficientlevelofdetailInabilitytoquantifytheimpactofdemandandsupplyvariabilityChallenges
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPSP-InventoryPlanningInventoSPMasterPlanningMasterPlanningGoal:Globallyoptimizeproductionplanconsideringtradeoffsofavailablecapacity,materials,costs,timeLackofvisibilityDisjointedplanningInabilitytoreconciledemandprioritieswithsupplyconstraintsInabilitytogloballyoptimizeproductionplanconsideringmultipleconstraintsPlanningdoesn’tsupportcorporateobjectivesChallenges
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPSPMasterPlanningMasterPlannSPFactoryPlanning&SchedulingFP&SchedulingGoal:OptimalexecutionoftheMasterPlantominimizecostandimprovequalityof
theplanMaterialandcapacityconstraintsnotconsideredsimultaneouslyInaccuraterepresentationofrealworldconstraintsSlow,inabilitytoreactLackofproblemvisibilityPoordeliverydatequotinginbuildtoorderChallenges
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPSPFactoryPlanning&ScheduliSP-DistributionPlanningDistributionPlanningGoal:OptimallypositioninganddeployinginventorytoachievedesiredcustomerserviceStore&DCreplenishmenthandledindependentlyLimitedabilityto
prioritizedemandPredetermined(akainflexible)distributingrulesInventorydistributedinadvanceofactualsalesChallenges
DistributionPlanning
MasterPlanning
FactoryPlanning&Scheduling
InventoryPlanningDPSP-DistributionPlanningDistCustomerBenefitsGrowth:IncreaserevenuesIncreasedmarginperformanceFinancialPerformance:ReducedinventorycostsandobsolescenceOptimaluseofavailablecapacityandinventoryReducedprocurementexpensethroughaccurateorderingImprovedCustomerServiceAndifyoudotheabove…increased
stockpriceCustomerBenefitsGrowth:SelectedAPSImplementationsbyIndustryAerospaceBellHelicopterU.S.NavyAutomotiveFordGMVolvoChemicalOccidentalChemicalNovartisMacMillanBloedelConsumerGoods(Durable)BakerFurnitureBlack&DeckerBoseHermanMillerConsumerGoods(Non-Durable)3MAultFoodsConsumerGoods(Non-Durable)CocaColaE&JGaloFritoLayHighTech3COMDellDigitalGatewaySiemensIndustrialCaseCaterpillarMercuryMarineMedicalJohnson&JohnsonBristol-MeyersSquibbMetalsTimkenSelectedAPSImplementationsbThereAreaNumberofAPSVendors.AccordingtotheGartnerGroup,i2TechnologiesandManugisticsAretheLeadersToday.DeloittecurrentlyhasestablishedAPSrelationshipswithi2,Manugistics,SynQuestandParagon.D&ThasERPpartnershipswithPeopleSoft,JDENumetrix,BaanandSAP.Source:GartnerGroup(03/26/99)NotefromS:TheTablewasdeletedduetocopyrightsconstraints.RefertotheGartnerGroupdatabaseinSforcurrentinformation.ThereAreaNumberofAPSVend1999EstimatedTotalSCMMarketShareSource:BenchmarkingPartners,Inc.1999EstimatedTotalSCMMarke1999Estimated%ShareofMarketLeadersByVerticalSource:BenchmarkingPartnersInc.1999Estimated%ShareofMark1999Estimated%GrowthbyVertical1998-1999Source:BenchmarkingPartnersInc.1999Estimated%GrowthbyVer1999AssessmentintheConsumerPackagedGoodsIndustrySource:BenchmarkingPartnersInc.1999AssessmentintheConsumeAppendixAppendixDemandPlanKEYCONCEPTSTrulyincorporatesknowledgefromvariouslevelswithinandoutsidetheorganizationProactivelycontroleventsandreducevariationsindemandforecastingSupportstop-down,bottom-upandhybridplanningapproachesMulti-dimensional,enterprisedemandplanningthatintegratessystems,processesandpeopleatmultiplelevelsINPUTConsidersstrategicgoals,inter/intra-companyobjectivesandconstrained
supplyinformationtoconstructrealisticdemandplanConsidersexternaleconomicandevents(promotions,pricingchanges,etc.)Multiplescenariocomparisonsandwhat-ifanalysisfacilitateappropriate
usestoaddvalueOUTPUTIdentifiesopportunities,formulatesstrategies,translatesthem
intoactionplansandactualexecutionsteps,andanalyzesresultsProducesrealisticforecastthatdrivesinventory,financialand
operationalplansReducessupplychaininventoryandcosts
DemandPlanKEYCONCEPTSSupplyPlanKEYCONCEP
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