Alex Albertini from Pacific Sunwear and Matthew Tabisz from Samsung on Manage Supply Chain Risk Through Forecasting Accuracy: Build a demand-driven supply chain by harnessing data management skills and optimizing inventory
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This document outlines the benefits of collaborative planning between partners to provide supply chain stability. It discusses how a pre-collaborative state features limited forecasting accuracy, increased production planning lead times, and high order fulfillment costs. The document then details a four phase implementation of collaborative planning involving consensus forecasting, production planning integration, and delivery optimization. Finally, it describes the anticipated post-collaborative state of improved forecasting accuracy, reduced order lead times, and shared key performance indicators between partners.
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Alex Albertini from Pacific Sunwear and Matthew Tabisz from Samsung on Manage Supply Chain Risk Through Forecasting Accuracy: Build a demand-driven supply chain by harnessing data management skills and optimizing inventory
- 1. Collaborative Planning to Provide Stability June 2010 1
- 2. Agenda Agenda Pre-Collaborative State Steps for Collaboration Implementation Post-Collaborative State Questions 2
- 3. 3
- 4. Pre-Collaborative State Forecasting • Limited accuracy • Lack of information Production Planning • Plan must be locked further out than desired • Increased bullwhip effect 100 95 96 98 93 90 89 91 90 87 85 Accuracy (%) 83 80 73 70 60 Month 1 Month 2 Month 3 4
- 5. Pre-Collaborative State Order Preparation L/T • Reduced time to pick, prepare, and ship orders • Reactive mode • Queuing for transportation optimization is not feasible Days Of Sales • Excess carrying cost • Greater exposure to obsolescence < 3 hrs 3-6 hrs 5% 9% 6-12 12 hrs 10 24% 8 > 12 hrs 6 63% 4 2 0 Order Preparation L/T Weeks of Sales 5
- 6. Steps for Collaboration Implementation Customer 6
- 7. Steps for Collaboration Implementation CPFR Material Operation Delivery Management Optimization Convert Improve Planning OTQR Implement from As-Is Safety Stock to To-Be Improved to support forecast operations and order processes Phase I Phase II Phase III Phase IV 7
- 8. Present Replenishment Target Replenishment Partner Samsung Partner Samsung Partner Consensus Forecast View Forecast Production Production Plan Plan Shortage/ Expected Stock out Supply Poor Supply Visibility Improved Supply Visibility 8
- 9. Steps for Collaboration Implementation Sales QA/Eng IT Collaboration Business Operations Planning 9
- 10. Post Collaborative State Forecasting Accuracy 100 80 60 • Plans integrated with supply chain < 3 hrs 3-6 hrs 6-12 partner 1% 5%hrs Order Prep L/T 13% • System-System integration > 12 hrs 81% • Exception-based planning & mgt. • Risks and rewards are shared between partners (KPIs) Weeks of Sales 14 12 10 8 6 4 2 0 10
- 11. Questions THANK YOU! 11