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Prestiva Demand Management Overview


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Demand Management Overview

Demand Management Overview

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  • 1. SAP – Demand Management Demand Management Stakeholders Prepared by: Murali Venkatesh Version. 1.0 January 4 2010 SAP – Demand Management
  • 2. Agenda
    • Demand Management Stakeholders
    • Demand Management Process
    • Questions
    Murali Venkatesh - Demand Management Overview
  • 3. Forecast Customer Demand Demand Management Stakeholders
    • Crude Supply
    • Refinery Production
    • Supply Trading
    • Buy
    • Exchange
    • Supply Operations
    • Pipeline
    • Marine
    • Distribution
    • Rail
    • Truck
    Satisfy Customer Demand
    • Rack Forward Sales
    • Direct
    • Marketer
    • Petro-Pass
    • Rack
    • Retail
    • Refinery Sales
    • Chemicals
    • HFO
    • Asphalt
    • Lubes (Light Oils)
    • Supply Trading (Sales)
    • Rack Forward Planning
    • Consolidation
    • Validation
    • Supply Optimization
    • Sales to Supply translation
    • Refinery LP forecast
    • Integration & Planning
    • Selectivity
    • Pricing
    • Accounting
    Demand Supply Murali Venkatesh - Demand Management Overview
  • 4. Historical Sales & Business Plan Baseline Sales Field Input Forecast Customer Demand National Consolidation & Validation Sales to Supply Translation Supply & Demand Balancing Acquire Raw Material Manufacture Refined Product Buy Finished Product Move Product To Supply Terminal Customer pick-up Customer Delivery Satisfy Customer Demand Demand Management Processes Murali Venkatesh - Demand Management Overview
  • 5. Murali Venkatesh - Demand Management Overview
  • 6. Planning Demand Prioritizing Demand Communicating Demand Influencing Demand Demand Management
    • Demand Management involves more than just forecasting. It encompasses planning demand, communicating demand, influencing demand and managing and prioritizing demand
    • The Demand Management process needs a single owner – best practice is for Sales to own and lead the process
    • The demand management process is an ongoing process, not a periodic event
    • The demand plan is communicated in terms that are meaningful for the supply and finance organizations
    • The demand plan is used as the basis for developing finance and supply projections
    • The demand plan is reached through consensus of stakeholders (ie. Sales, Marketing, Production, Logistics, Customer Service, Finance) – decisions made reaching consensus turn the demand forecast into a demand plan and a commitment to achieve the plan
    • Demand Management allows for seamless integration and synchronization between demand planning and production & logistics
    Demand Planning – Best Practices (preliminary notes) Planning Demand
    • The demand plan is based on input from the marketing, sales, brand and product organization as well as statistical analysis with a minimum 18 month time horizon
    • Demand planning is a repetitive process for updating plans – updated at least monthly with weekly production and logistics reviews
    • The demand plan is considered a request for product by the demand organization with different levels of stability
      • Firm Zone – Material Purchased, Production committed
      • Trading Zone – Materials committed
      • Free Change Zone – Few or no commitments made
    • Demand Planning process includes multiple views / perspectives (ie. Statistical forecast, Sales plan, Customer forecast)
    • The demand plan and business plan are not arbitrarily forced to match
    Murali Venkatesh - Demand Management Overview
  • 7. Questions? Murali Venkatesh - Demand Management Overview Contact :