SCL HUB June 2016

1. DEMAND PLANING
Get the basics in
place
June 9th 2016

2. GSK – Consumer Health

3. IBP - Overview
High Level – we should be familiar with the basic processes
S&OP
Portfolio
Review
Demand
Review
Supply
Review
Reconciliation

4. IBP - Tactical
Rarely do we discuss the tactical – ‘the how’
S&OP
Portfolio
Review
Demand
Review
Supply Review
Reconciliation
Tactical Demand
Planning

5. Suggested Process
WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
Brand
Forecast
Alignment
Next
Slide
Next
Slide
Inventory
Review
Controller
Reviews
Demand
Review
DRM
PMR
Promo
Account
Clinic
Weekly
Forecast
Review
Friday & Monday every week
Overview – collection of meetings and reviews – Pre DRM

6. WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
Demand
Review
Meeting Objectives Outputs
Demand
Reviews
• To have the most accurate
forecast possible.
• Embedding the customer
and variant segmentation
models; introduction of stat
forecasting models to drive
greater levels of accuracy.
• The system based forecast
will become the numbers
that are reported at DRM
and S&OP.
• Shared understanding of
Customer performance.
• Jointly built base forecast.
• Understanding of necessary
subsequent actions.
• Key actions agreed and
recorded for use in
Controller Reviews.
• Supply Forecast
• Fully validated base
forecast.
Suggested Process
Demand Reviews

7. WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
Controller
Reviews
Demand
Review
Meeting Objectives Outputs
Controller
Review
• Full understanding of
Sales performance
and forecast Broken
down by category and
brand within a retailer.
• Inputs from a supply
perspective as well as
analysis of all Risks
and Opps to
determine and finalise
a robust forward
position
• Shared understanding
of performance and
forward forecast
including drivers,
drainers, risks & opps.
• Promotional
performance reviews
and promotional
calendar review
• Key actions to drive
performance
• Validated forecast
Suggested Process
Overview – collection of meetings and reviews – Pre DRM

8. WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
Inventory
Review
Controller
Reviews
Demand
Review
Meeting Objectives Outputs
Inventory
Review
• Identify stock
to be sold
from surplus,
residual,
overstock
• Plan 3
months out
and feed
opps into
DRM
• Agree list of
sell through
materials
• 3 months
view of stock
to be sold to
input into
DRM
Suggested Process
Overview – collection of meetings and reviews – Pre DRM

9. WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
Brand
Forecast
Alignment
Inventory
Review
Controller
Reviews
Demand
Review
Meeting Objectives Outputs
Brand Forecast
Alignment
(BFA)
• Brand lens performance review,
focusing on prior month, rolling
3 months and full year number
keeping in line with the
brand/customers prioritisation.
• Align of forecast to be taken to
DRM
• Shared & aligned understanding
of Business performance and
forward forecast including
drivers/drainers, risks & opps,
between Sales and Marketing.
• Identify gap to plan and R&Os
to be explored ahead of DRM
Suggested Process
Overview – collection of meetings and reviews – Pre DRM

10. WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
Brand
Forecast
Alignment
Inventory
Review
Controller
Reviews
Demand
Review
DRM
Meeting Objectives Outputs
Demand Review
Meeting
(DRM)
• DRM- Alignment of
Category/Brand FY forecast
from (Volume, Sales, G2N, GP,
BC) and identify any gaps to
plan and agree actions to close
• Drivers/drainers, risks & opps.
• Key actions in place to close
gaps in plan
• Validated capacity and demand
plan
• Validated forecast (18-24
months)
Suggested Process
Overview – collection of meetings and reviews – Pre DRM

11. WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
Brand
Forecast
Alignment
Inventory
Review
Controller
Reviews
Demand
Review
PMR
Meeting Objectives Outputs
Portfolio Review
Meeting
(PMR)
• PMR - Alignment of Marketing,
Supply & Sales to approve the
right course correcting activity to
deliver the in year NPI targets
and generate initiatives that will
deliver the next years target
• Portfolio Optimisation
• Innovation
Suggested Process
Overview – collection of meetings and reviews – Pre DRM

12. WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
Brand
Forecast
Alignment
Inventory
Review
Controller
Reviews
Demand
Review
Promo
Activity
Meeting Objectives Outputs
Promotional
Activities
• Alignment of Marketing & Sales
to approve the right course
correcting activity to deliver the
in year targets and generate
initiatives that will deliver the
next years target
• Signed off promotional and
• listing opportunities
Suggested Process
Overview – collection of meetings and reviews – Pre DRM

13. WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
Brand
Forecast
Alignment
Next
Slide
Next
Slide
Inventory
Review
Controller
Reviews
Demand
Review
DRM
PMR
Promo
Account
Clinic
Meeting Objectives Outputs
Account Clinics
• To gain greater alignment,
visibility and understanding of
the plans across all accounts
and support for incremental
opportunities to close any gap
• Shared understanding of Business
performance and forward forecast
including drivers/drainers, risks &
opps.
• Key actions to feed into next
cycle
Suggested Process
Overview – collection of meetings and reviews – Pre DRM

14. WD -20
to - 12
WD -10
to -5
WD -4 WD 5 WD 6 WD 9 WD 12 WD 13 WD 17
FC70S&OPFC
DUE
System
Deadline
Demand
Reviews
ACT
Next
Slide
Next
Slide
Meeting Objectives Outputs
Weekly Forecast
Alignment
(WFR)
• To gain alignment, visibility
and understanding of the
month actual vs forecast
• Shared understanding of any risk
to month number
• Key actions to drive
performance to hit plan for the
month
Weekly
Forecast
Review
Friday or Monday every week
Suggested Process
Overview – collection of meetings and reviews – Pre DRM