14. 14
Independent and Misaligned Goals
Retailers and Manufacturers Both
Struggle with Problems…Independently
Disconnected Models & Systems Create Uncertainty, Accountability Issues and Unnecessary Costs
Supplier-Centric
Planning
Retailer-Centric
Planning
15. 15
Benefits
Pre-built store level
metrics
Algorithms that
determine root-cause
Auto-cleansing demand
history
Tied to supply chain
levers
Opportunity
Benefits
Opportunity
One view of key
metrics
Enable joint planning
with retailer partners
Drill up/ down
Optimized for scale
and performance
Benefits
Prescriptive simulation
modeling across 5
categories (Promotions,
Inventory, fulfillment,
deployment, and
network strategy).
View tradeoff decisions
across multiple
simulations
Benefits
Dashboard monitoring of
new product introduction
performance by store
Drill up/down hierarchy
analysis
Daily visibility of
performance vs. target
Collaboration
Workbench
Root Cause Analytics Simulation
Modeling
New Product
Intelligence
JDA Flowcasting
Leverage Cloud Computing
16. 16
Flowcasting and Forecast Accuracy
> “Drake said the solution, now live with a couple of retail customers, has
delivered the biggest single improvement in forecast accuracy in the history of
Kraft, while noting that in a sense Flowcasting has upended Kraft’s existing
thinking about the value of traditional forecasting and accompanying
resources”
16
Dan Gilmore, Supply Chain Digest , May 11 , 2012
18. 18
Plan Management
Planning Control Tower
> Agile Workbench enables fast response to
events via guided resolution paths
powered by a live in-memory simulation
engine
- Respond to disruptive events quickly and
profitably
- Triage and resolve exceptions via pre-
packaged resolution levers
- Perform rapid what if simulations to try out
various scenarios
- Update the plan of record in incremental
fashion
19. 19
The Shift in Production Planning
> Weekly production plan
> Load leveling based on the primary
bottleneck constraints
> Manual plan tuning was expected as part of
the planning process
> Material availability was primarily MRP and
procurement issue
In the past . . . Today . . .
> Increased demand volatility requires daily
production planning
> Floating bottlenecks (due to high demand
mix)
> Production planners don’t have time to
respond to volatility
> Must consider material availability due to
volatile material costs and increased lead
times
20. 20
Order Promising Maturity
Maturity
Agility
Level 1
Fixed Lead Times
Level 2
Simple Available-To-
Promise (ATP)
Level 3
Real-Time, Allocated
ATP
Level 4
Real-Time, Allocated
Capable-To-Promise
Level 5
Closed-Loop
Profitable Promising
Lead times are
theoretical or averages
based on past
performance
Does not adapt to
changing supply and
demand
Does not incorporate
supply chain or
customer priorities
Simple finished good
supply including on-
hand, in-transit,
planned and projected
receipts
No reservations for key
channels, customers or
tiers
Simple logic to match
demand to supply
Differentiated
allocation policies for
channel and product
segments
Segmentation
strategies regularly
tuned to business
conditions
Automatic supply-
demand balancing
Lights-out promising
with workflows to
manage exceptions
Reservations at
multiple levels in the
supply chain by channel
and product line
On-going proactive
management of
response to forecast
Advanced root cause
analysis and exception
resolution
Price-point and profit-
sensitive reservations
at multiple supply chain
levels
Interactive planning
adjustments and re-
allocations
Closed-loop feedback
on order execution
Tune promising policies
to adapt to changing
buying patterns
“Apply the Gartner Supply Chain Maturity Model for Better Supply Planning”, Gartner, April 2014
21. 21
Connecting Planning to Execution
Demand Planning
Supply Chain
Strategy
Inventory
Optimization
Sales & Operations
Planning
Replenishment
Master Planning
Factory Planning,
Scheduling
Order Promising
HoursShiftsDaysWeeksMonthsQuartersYears Real-Time
Long-Range Demand
Planning
Medium-Range
Consensus Demand Plan
Strategic Network
Design
Portfolio
Segmentation
Tactical Inventory
Planning
Strategic
Inventory
Planning
Executive S&OP Operational S&OP
Distribution
Requirements Planning
Deployment
Planning
Master Production Planning
Factory Planning & Scheduling
Allocation Planning Order Promising
2. Build to support the plan
1. Plan what you want to sell
3. Promise what you can build
ERP/WMS/TMS/MES
4. Deliver on promises
and achieve the plan
