Focus on the operations side of Sales & Operations Planning

Real Time Sales & Operations Planning

Arun Cavale

About
Arun Cavale Principal Heads Advanced Planning & Supply Chain consulting practice. Enabled Fortune 1000 clients improve supply chain delivery performance with successful planning initiatives

Celebrating 10 Years of Excellence

Consulting & Services Supply Chain Process Design using Oracle Advanced Planning / Demantra About Supply Chain Consulting Best-in-class provider of Supply Chain Process Design

Forecasting & Demand Management Supply & Manufacturing Management Sales & Operations Planning Risk & Liability Planning
Founded in 1999; Orange County, CA Deep domain expertise Named Fortune 1000 customers

Agenda

S&OP and Demantra Overview Focus on Operations Summary Q&A

Overview

Sales & Operations Planning

An enterprise level management process that formalizes a common operating plan based on consensus between the sales, marketing, manufacturing and financial functions

Finance S&OP Plan Executive Management

Sales & Marketing

Measurement and Reporting

Manufacturing & Distribution

Sales & Operations Planning Process

Finance Planning
Finance Plan Business Planning

Sales & Operations Planning

S & OP Process

The Plan

Demand Planning
Forecast Sales & Marketing Input Consensus Forecast

Supply Planning
Constrained Supply Plan Simulations Distribution Plan MFG Plan

Demantra Products

Demand Management

Predictive Trade Planning

Real-time Sales and Operations Planning

Advanced Forecasting and Demand Modeling

Deduction and Settlement Management

Trade Promotion Optimization

Oracle Demantra Products Oracle Demantra Platform of 6 Solutions

-Demantra Demand Management -Advanced Forecasting and Demand Modeling -Real Time Sales and Operations Planning -Predictive Trade Planning -Trade Promotion Optimization -Deductions and Settlement Management

Oracle Demantra Products

Demantra Demand Management Core Application
Collect data from Source Load Dimension, Level values and Transaction values Statistical forecasting using Bayesian model Reporting & analysis Collaboration Platform - alerts & exceptions Unlimited Hierarchies, Dimensions, Levels and Attributes Mixed/Multiple Demand Signals

Oracle Demantra Products

Real Time Sales and Operations Planning
Balancing supply and demand across all business functions for a cohesive business planning process

Repository for Supply & Demand information Supports Consensus based Demand Planning Workflow based process Canned worksheets to define process Top Down and Bottoms up Plan validation Financial Gap Analysis Exception based reporting Notes and Audit Trail tracking

Focus on Operations

S&OP Goals
Demand Management
Forecast accurately Track forecasted versus realized demand closely Fulfill orders on time
Manage demand volatility Inventory

Supply Management
Level Load Production Reduce Production costs Forecast accurately to suppliers
Level Production Backlog

Organizational Goals
Improved Customer Service Optimal Inventory levels Predictable outcomes

Evolution of Planning Tools

Supply Tracking

ERP / DRP MRP II MDS Foreca st

Advanced Planning
Sales & Operations Planning

Real Time Sales & Operations Planning Demand Sensing

Demand Planning

Demantra Demand Management

Forecasting Capabilities Advanced Bayesian Model Library of advanced algorithms Advanced tuning capabilities Demand Sensing Advantage Collaborative capabilities Track and sense demand based on realization Simulation capabilities

Advanced Supply Chain Planning or DRP with Demantra RTSOP

Production Planning Capabilities Rough cut or detailed capacity planning Holistic material planning Optimization capabilities Supply Tracking Advantage Production Adherence tracking Supply tracking Track Inventory and Backlog Key Performance Indicators Iterative simulation capabilities

Supply Planning Cycle

Using Constrained Manufacturing Plan

Holistic Plan Consensus Forecast

Global

Distribution Plan Function

Manufacturing Plan Function

Constrained Forecast

Constrained Prod Plan Actuals

Manufacturing Execution

Demantra Real Time Sales & Operations Planning

Supply Planning Cycle

Using an un-Constrained Manufacturing Plan

Consensus Forecast
Global

Distribution Plan Function

Manufacturing Plan Function

Unconstrained Production Plan

Export to Excel

Constrained Distribution Plan

Constrained Forecast

Constrain & Level Constrained Prod Plan

Actuals

Manufacturing Execution

Demantra Real Time Sales & Operations Planning

Supply Planning Cycle

Non-Manufacturing Environment

Consensus Forecast
Global

Supplier Forecast

Distribution Plan Function

Commits Constrained Forecast

Collaborative Function

Suppliers

Supplier Forecast Commits Actuals

Supply Execution

Demantra Real Time Sales & Operations Planning

S&OP Adjustments
Demantra RTSOP

Demantra Real Time Sales & Operations Planning

Demand Consensus Forecast Approved Forecast Constrained Forecast Constrained Production Schedules Supplier Commits Negotiate & Adjust Forecast Product Mix Capacity Targets Approved Production Schedules Approved Supplier Schedule

S&OP Adjustments
Demantra RTSOP
Demand Management
Consensus Waterfall Analysis Sales Forecast Marketing Forecast Consensus Forecast KPI Dashboard

Demand Supply Partnership

Constrained Forecast Resource Rough Cut Capacity Plan Production Plan Inventory Plan Projected Backlog Financial Summary KPI Dashboard

Management Review
Cumulative Plan KPI Scenario Comparison KPI Dashboard

Demand Consensus Forecast

Constrained Forecast Production Plan Inventory Plan Backlog Plan

Approval

Demantra S&OP Overview

Demand Consensus Forecast KPI Scenario Comparison Constrained Forecast Inventory Plan Backlog Financial Summary

Predefined Components Series

Consensus Forecasting
Sales Forecast Marketing Forecast Consensus Forecast

Production Plan
Actual Production Production Plan Production Adherence % Actual On-Hand Projected On-Hand Periods On-Hand Cumulative Consensus Fcst Cumulative Constrained Fcst Cumulative Budget

Constrained Forecast
Constrained Forecast Unmet Demand Demand Fill %

Inventory Plan

Resource Capacity
Required Capacity Available Capacity Utilization %

Consolidated View

Demo

Summary

Summary
Overview Sales and Operations Planning Process Demantra Modules Focus on Operations Demand and Supply Goals Manufacturing environment Non-manufacturing environment Key Performance Indicators

On behalf of the OAUG Demantra SIG I thank you for your time

Arun Cavale
acavale@nexinfo.com NexInfo

End