A presentation by Dawie Poolman CSCP, Honours degree in Industrial Engineering, Solution Architect, Barloworld Logistics, South Africa. Delivered during the 38th annual SAPICS event for supply chain professionals in Sun City, South Africa. Toyota South Africa Motors has embarked on a journey to co-ordinate a range of diverse and often conflicting planning tools and processes into a single planning platform. This is the story of a real life journey of passionate supply chain practitioners implementing a demand and supply management software toolset to support a highly specialised and complex S&OP process in the automotive sector. The solution covers hierarchical demand planning for vehicles, market size and share projections, constrained supply ordering, shipment schedules, and fair allocation of vehicles across a large dealer network, over a continuously moving budget horizon. Join us to learn how strategic, tactical and operational planning can be combined in one platform. Find out how fairness can be incorporated into mathematical algorithms. Discover where the worlds of demand pull and supply push collide.

1. Implementing a demand and
supply planning system at
Toyota South Africa Motors
Dawie Poolman - Barloworld
Eric Swardt - Toyota

2. Agenda
1. Mission and Purpose
2. Project Summary
3. Solution Complexities & Challenges
4. Planning Horizons and levels
5. Demand Hierarchies
6. Fair distribution simulation example
7. Technical Solution Architecture
8. AMA Discussion

3. Mission and purpose
"The Demand Planning system is
an integrated planning system
for the Sales & Marketing
division, which manages the
Sales and Supply (SAS) process
of vehicles in Southern Africa and
optimize production orders in
line with customer demand,
considering pipeline stock, from
production order, to retail sale,
as well as constraints
throughout the supply chain”

4. Project Summary
Sales Planning
Supply
Planning
Demand
Chain
Management
Supply Chain
Management
Decision
Support

5. Solution Complexities & Challenges
Methodology &
Terminology
Bidirectional solve
(Pull then Push) at
multiple levels (Model
Range and Short
Model Code)
Explicit Shipments Runtime
Integers & Proration
Fair Share between
dealers at Model
Range level (Product
group level)
Planning phases
Demand shaping
Complex
Supercessions
Production Order
Pegging
Customisations

6. Planning
horizon &
levels
Strategic
Operational
3-4 months
Tactical
9 months Current + 3 years
Model Range +
SMC
Model
Range
Model Range + SMC +
Colour + Trim
1.6 L
2 L
1.6 L Light grey leather
2 L Exclusive
2 L Standard
Corolla
Mix Volume

7. Market Forecast TSAM Forecast
Market
RGT-NAAMSA Market Data
BER – Economic Data
TSAM Sales Transactions
Total
Vehicle
Type
Segment
Distribution Channel
Market sales
TSAM
Integration
Total
Brand
Vehicle Type
Segment
Model Range
Distribution Channel
Short Model Code (SMC)
Dealer
Sales Region
District
TSAM Sales
24 m sales history 54 m horizon60 m sales history 54 m horizon
1
2
3
4
5
6
7
Demand Hierarchies
Market forecast
TSAM Share of Market
TSAM Segment Share

8. Planning Hierarchy Levels

9. Fair Share simulation
• Real Dealer Data
• Model Range = Fortuner
• Assume only 80% of demand can be supplied available over time
Expectation:
20 % Average shortfall per dealer…..
Keeping all dealers equally unhappy

10. Simulation Results 1/2

11. Simulation Results 2/2

12. Technical Solution Architecture
Integration Layer
Cognos
BI
Layer
Market ODP
TSAM ODP
CAST Flow
National Scenario
(for Production)
Model Range & SMC
Scenarios
(for Dealer Distribution)
Simulation
Reporting
SAP/
eToyota
Custom
GUIs
Barloworld Toyota

13. Planning Metrics
Stockholding Sales Plan
Accuracy
Production
Order Accuracy
Time Saving and
Overtime Saving
The automation of an effective planning process has made the (The Toyota Way)
planning process more efficient.
All key planning
metrics have
improved or
remained stable since
implementation

14. AMA (Ask Me Anything)