2006 Acquisition Initiatives


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2006 Acquisition Initiatives

  1. 1. Demand/Supply Alignment What is Supply Chain Planning? Supply Chain Planning consists of Demand Planning, Supply Planning, and Demand/Supply Alignment. Demand Planning Supply Planning “ What will my customers need? When will they need it?” “ What do I need to meet their needs? When do I need it?” “ What do I do when I don’t have enough to meet all of the demand?”
  2. 2. Migration to BSM Jobs <ul><li>As items move to BSM, the staff supporting those items will move to BSM jobs </li></ul><ul><li>Legacy jobs must be mapped to BSM jobs </li></ul><ul><li>Some legacy jobs map directly to one BSM job </li></ul><ul><ul><li>Contracting Specialist to Acquisition Specialist </li></ul></ul><ul><li>Other jobs may map to more than one BSM job </li></ul><ul><li>Item Managers fall into second category </li></ul><ul><ul><li>Map to three BSM jobs </li></ul></ul>
  3. 3. Item Manager Job Mapping <ul><li>In BSM, IM functions split between 3 jobs </li></ul><ul><li>Two jobs are in customer-facing organization </li></ul><ul><ul><li>Customer Account Specialist </li></ul></ul><ul><ul><li>Demand Planner </li></ul></ul><ul><li>One job is in supplier-facing organization </li></ul><ul><ul><li>Supply Planner </li></ul></ul>
  4. 4. Customer Account Specialist <ul><li>Major duties for a CAS are: </li></ul><ul><li>  Process Customer Orders </li></ul><ul><li>  Performs Customer Service Activities </li></ul><ul><li>  Performs Customer / Operational Studies </li></ul><ul><li>Monitors DLA support to customers </li></ul><ul><li>Work with Procurement personnel to resolve delinquent contracts   </li></ul>
  5. 5. Demand Planner <ul><li>Demand Planner major duties: </li></ul><ul><li>  Major duties for a Demand Planner are: </li></ul><ul><ul><li>Performs Demand Forecasting </li></ul></ul><ul><ul><li>Monitors Demand Plan Accuracy </li></ul></ul><ul><ul><li>Collaborates with customers </li></ul></ul>
  6. 6. Supply Planner <ul><li>Supply Planner major duties: </li></ul><ul><ul><li>  Analyzes TPIP for accuracy </li></ul></ul><ul><ul><li>Ensures correct depot deployment </li></ul></ul><ul><ul><li>Coordinates with Demand Planner to resolve forecast problems </li></ul></ul><ul><ul><li>Processed blocked orders by making a recommendation to procure/redistribute </li></ul></ul><ul><ul><li>Follow-up with acquisition specialists on open PRs </li></ul></ul><ul><ul><li>Work with Procurement personnel to resolve delinquent contracts   </li></ul></ul><ul><ul><li>Coordinate with acquisition specialists on min buy qtys, price breaks, tech issues and qty validations </li></ul></ul><ul><ul><li>Initiate Material Master Changes if required </li></ul></ul><ul><li>  </li></ul>
  7. 7. Manage Demand History Forecasting Will Be Done By Demand Forecasting Unit (DFU) DLA DFU Hierarchy = Product – Customer – Location Replenishment to Location Will Be Done by Stock Keeping Unit (SKU) SKU = Product – Location DFU Forecast DFU Forecast DFU Forecast SKU Location (Distribution Center)
  8. 8. <ul><li>Aggregation </li></ul><ul><ul><li>Summing history data. </li></ul></ul><ul><ul><li>Reasons for aggregating history include: </li></ul></ul><ul><ul><ul><li>Reporting purposes. </li></ul></ul></ul><ul><ul><ul><li>Forecasting at lowest DFU level. </li></ul></ul></ul>Develop Enriched Demand Plan Sales Order History Lower level – DODAAC 222 Aggregate level - SKU 221 Item 211 FSC 111 Map History/ Supply Planning
  9. 9. <ul><li>DFU to SKU Map </li></ul><ul><ul><li>Maps the relationship between a Demand Planning DFU and a Supply Planning SKU. </li></ul></ul><ul><ul><li>Allows the one number forecast to be passed to Supply Planning. </li></ul></ul>Develop Enriched Demand Plan DFU NIIN.Customer.Depot NIIN.Depot SKU Demand Planning Supply Planning
  10. 10. Collaboration <ul><li>We Want To Improve Our Ability to Supply Our Customers </li></ul><ul><li>Special Program Requirements (SPRs) Are Not Adequate to Meet Our Challenges </li></ul><ul><li>The BSM Collaborative Planning Process is State-of-the-Art and Used By World Class Companies </li></ul><ul><li>Two-Way Communication and a Working Partnership Are Critical to Success </li></ul>
  11. 11. Demand Planning Process Inputs Benefit: Better anticipation and response to customer needs The Demand Planning process takes all available demand signals into consideration when creating a consensus demand plan for the enterprise Business Rules Generate Demand Plan Finalize Demand Plan Publish Forecast to Supply <ul><li>Historical Sales Order Data </li></ul><ul><li>Customer Collaborative Forecasts </li></ul><ul><li>Forecasts via CRM feedback </li></ul><ul><li>Special Program Requirements (SPRs) </li></ul><ul><li>DFU Builder </li></ul><ul><li>Forecastability </li></ul><ul><li>Requisitioner Activity Test (RATs) </li></ul><ul><li>Forecasting Model </li></ul><ul><li>Maintain Forecast Parameters </li></ul><ul><li>Exception Management over the Planning Horizon </li></ul><ul><li>Analyze Collaborative Feedback </li></ul><ul><li>Consensus Forecast </li></ul><ul><li>Strategic, Operational, Tactical, Demand Plan </li></ul><ul><li>Sales input for budgeting </li></ul>
  12. 12. Supply Planning Process Inputs The Supply Planning process focuses on the development and implementation of time phased inventory plans based on established planning rules Business Rules Generate Replenishment Plan Finalize Replenishment Plan Benefit: Ensures appropriate supplier capabilities & physical inventories are available in the right place at the right time <ul><li>Consensus Demand Plan </li></ul><ul><li>On-Hand inventory </li></ul><ul><li>Intransits </li></ul><ul><li>Scheduled Receipts </li></ul><ul><li>Safety Stock </li></ul><ul><li>Stockability (CD ↔ DD) </li></ul><ul><li>Replenishment vs. Non-Replenishment </li></ul><ul><li>Safety Stock Levels </li></ul><ul><li>Deployment business rules </li></ul><ul><li>PLAN Process </li></ul><ul><li>Resolve Exceptions </li></ul><ul><li>Manage Workflow </li></ul><ul><li>Validate Purchase Requisitions </li></ul><ul><li>Analyze supplier collaborative feedback </li></ul><ul><li>Recommended Shipments </li></ul><ul><li>Final Replenishment Plan </li></ul><ul><li>Purchase Requisitions </li></ul>Output
  13. 13. What all of this means to you <ul><li>New roles of CAS, DP and SP may result in you receiving calls from CASs </li></ul><ul><li>DLA is working harder with our customers to improve our forecasts </li></ul><ul><li>Customer collaboration results in customer focused forecasts </li></ul><ul><li>This should result in forecasts we have more confidence in </li></ul><ul><li>We eventually want to share forecast information with customers </li></ul><ul><ul><li>Sole source directly with providers </li></ul></ul><ul><ul><li>Competitive by posting information publicly </li></ul></ul><ul><li>Supply Planning by SKU can result in increased frequency of buys for smaller quantities </li></ul><ul><li>More complex sourcing capability will allow for some items to be supported by both DVD and from inventory </li></ul>