Prestiva Demand Management Overview


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Demand Management Overview

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Prestiva Demand Management Overview

  1. 1. SAP – Demand Management Demand Management Stakeholders Prepared by: Murali Venkatesh Version. 1.0 January 4 2010 SAP – Demand Management
  2. 2. Agenda <ul><li>Demand Management Stakeholders </li></ul><ul><li>Demand Management Process </li></ul><ul><li>Questions </li></ul>Murali Venkatesh - Demand Management Overview
  3. 3. Forecast Customer Demand Demand Management Stakeholders <ul><li>Crude Supply </li></ul><ul><li>Refinery Production </li></ul><ul><li>Supply Trading </li></ul><ul><li>Buy </li></ul><ul><li>Exchange </li></ul><ul><li>Supply Operations </li></ul><ul><li>Pipeline </li></ul><ul><li>Marine </li></ul><ul><li>Distribution </li></ul><ul><li>Rail </li></ul><ul><li>Truck </li></ul>Satisfy Customer Demand <ul><li>Rack Forward Sales </li></ul><ul><li>Direct </li></ul><ul><li>Marketer </li></ul><ul><li>Petro-Pass </li></ul><ul><li>Rack </li></ul><ul><li>Retail </li></ul><ul><li>Refinery Sales </li></ul><ul><li>Chemicals </li></ul><ul><li>HFO </li></ul><ul><li>Asphalt </li></ul><ul><li>Lubes (Light Oils) </li></ul><ul><li>Supply Trading (Sales) </li></ul><ul><li>Rack Forward Planning </li></ul><ul><li>Consolidation </li></ul><ul><li>Validation </li></ul><ul><li>Supply Optimization </li></ul><ul><li>Sales to Supply translation </li></ul><ul><li>Refinery LP forecast </li></ul><ul><li>Integration & Planning </li></ul><ul><li>Selectivity </li></ul><ul><li>Pricing </li></ul><ul><li>Accounting </li></ul>Demand Supply Murali Venkatesh - Demand Management Overview
  4. 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. 5. Murali Venkatesh - Demand Management Overview
  6. 6. Planning Demand Prioritizing Demand Communicating Demand Influencing Demand Demand Management <ul><li>Demand Management involves more than just forecasting. It encompasses planning demand, communicating demand, influencing demand and managing and prioritizing demand </li></ul><ul><li>The Demand Management process needs a single owner – best practice is for Sales to own and lead the process </li></ul><ul><li>The demand management process is an ongoing process, not a periodic event </li></ul><ul><li>The demand plan is communicated in terms that are meaningful for the supply and finance organizations </li></ul><ul><li>The demand plan is used as the basis for developing finance and supply projections </li></ul><ul><li>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 </li></ul><ul><li>Demand Management allows for seamless integration and synchronization between demand planning and production & logistics </li></ul>Demand Planning – Best Practices (preliminary notes) Planning Demand <ul><li>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 </li></ul><ul><li>Demand planning is a repetitive process for updating plans – updated at least monthly with weekly production and logistics reviews </li></ul><ul><li>The demand plan is considered a request for product by the demand organization with different levels of stability </li></ul><ul><ul><li>Firm Zone – Material Purchased, Production committed </li></ul></ul><ul><ul><li>Trading Zone – Materials committed </li></ul></ul><ul><ul><li>Free Change Zone – Few or no commitments made </li></ul></ul><ul><li>Demand Planning process includes multiple views / perspectives (ie. Statistical forecast, Sales plan, Customer forecast) </li></ul><ul><li>The demand plan and business plan are not arbitrarily forced to match </li></ul>Murali Venkatesh - Demand Management Overview
  7. 7. Questions? Murali Venkatesh - Demand Management Overview Contact :