Focus on the operations side ofSales & Operations Planning

Real Time Sales & Operations Planning

Arun Cavale

About …

Arun Cavale Principal

Heads Advanced Planning & Supply Chain consulting practice. Enabled Fortune 1000 clients improve supply chain delivery performance with successful planning initiatives

� Consulting & Services

� Supply Chain Process Design using Oracle Advanced Planning / Demantra

� About Supply Chain Consulting

Celebrating 10 Years of Excellence

� About Supply Chain Consulting

� Best-in-class provider of Supply Chain Process Design

�Forecasting & Demand Management

�Supply & Manufacturing Management

�Sales & Operations Planning

�Risk & Liability Planning

� Founded in 1999; Orange County, CA

� Deep domain expertise

� Named Fortune 1000 customers

Agenda

� S&OP and Demantra Overview

� Focus on Operations

� Summary

� Q&A

Overview

Sales & Operations Planning

An enterprise level management process that formalizes a common

operating plan based on consensus between the sales, marketing,

manufacturing and financial functions

Finance

Sales &

Marketing

Manufacturing

& DistributionMeasurement

and Reporting

S&OP Plan

Executive

Management

Sales & Operations Planning

“The Plan”S & OP

Process

Finance Planning

Finance

Plan

Business

Planning

Sales & Operations Planning Process

Process

Demand Planning Supply Planning

Consensus

Forecast

Constrained

Supply

Plan

Forecast

Sales &

Marketing

Input

Distribution

Plan

Simulations

MFG Plan

Predictive Trade

Planning

Real-time Sales and

Operations PlanningDemand

Management

Demantra Products

Trade Promotion

OptimizationAdvanced Forecasting

and Demand Modeling

Deduction and

Settlement Management

Oracle Demantra Products

-Demantra Demand Management

-Advanced Forecasting and Demand Modeling

-Real Time Sales and Operations Planning

Oracle Demantra Platform of 6 Solutions

-Real Time Sales and Operations Planning

-Predictive Trade Planning

-Trade Promotion Optimization

-Deductions and Settlement Management

Oracle Demantra Products

Demantra Demand Management – Core Application

•Collect data from Source

•Load Dimension, Level values and Transaction values

•Statistical forecasting using Bayesian model

•Reporting & analysis

•Collaboration Platform - alerts & exceptions

•Unlimited Hierarchies, Dimensions, Levels and Attributes

•Mixed/Multiple Demand Signals

Oracle Demantra Products

Real Time Sales and Operations Planning

Balancing supply and demand across all business functions for a cohesive business planning process

•Repository for Supply & Demand information

•Supports Consensus based Demand Planning

•Workflow based process

•Canned worksheets to define process•Canned worksheets to define process

•Top Down and Bottoms up Plan validation

•Financial Gap Analysis

•Exception based reporting

•Notes and Audit Trail tracking

Focus on Operations

S&OP Goals

Demand Management

� Forecast accurately

� Track forecasted versus realized demand closely

� Fulfill orders on time

Supply Management

Manage demand volatility

Inventory

Supply Management

� Level Load Production

� Reduce Production costs

� Forecast accurately to suppliers

Organizational Goals

� Improved Customer Service

� Optimal Inventory levels

� Predictable outcomes

BacklogLevel

Production

Evolution of Planning Tools

MRP II

ERP / DRP

Advanced Planning

Sales &

Operations

Real Time Sales &

Operations

SupplyTracking

MRP II

Forecast

MDSDemand Planning

Operations

PlanningOperationsPlanning

DemandSensing

Demantra Demand Management

Forecasting Capabilities

� Advanced Bayesian Model

� Library of advanced algorithms

� Advanced tuning capabilities

Demand Sensing Advantage

� Collaborative capabilities

� Track and sense demand based on realization

� Simulation capabilities

Advanced Supply Chain Planning or DRPwithDemantra RTSOP

Production Planning Capabilities

� Rough cut or detailed capacity planning

� Holistic material planning

� Optimization capabilities

Supply Tracking AdvantageSupply Tracking Advantage

� Production Adherence tracking

� Supply tracking

� Track Inventory and Backlog Key Performance

Indicators

� Iterative simulation capabilities

Supply Planning Cycle

ConsensusForecast

Global

Holistic Plan

DistributionPlan Function

ManufacturingPlan Function

Using Constrained Manufacturing Plan

Constrained

Forecast

Constrained

Prod Plan

Demantra Real Time Sales & Operations Planning

ManufacturingExecution

Actuals

Supply Planning Cycle

ConsensusForecast

Global

DistributionPlan Function

ManufacturingPlan Function

Using an un-Constrained Manufacturing Plan

Unconstrained

Demantra Real Time Sales & Operations Planning

Export to Excel

Unconstrained

Production

Plan

Constrained

Forecast

ConstrainedDistribution

Plan

Constrained

Prod Plan

Constrain

& Level

ManufacturingExecution

Actuals

Supply Planning Cycle

ConsensusForecast

Global

DistributionPlan Function Suppliers

Non-Manufacturing Environment

Supplier

Forecast

CollaborativeFunction

Commits

Demantra Real Time Sales & Operations Planning

Constrained

Forecast

Supplier

Forecast

Commits

Commits

SupplyExecution

Actuals

S&OP Adjustments

Demantra Real Time Sales & Operations Planning

Demantra RTSOP

Demand Consensus

Forecast

Approved Forecast

Constrained Forecast

Constrained Production

Schedules

Supplier Commits

Negotiate & Adjust

Approved Production

Schedules

Approved Supplier

ScheduleForecast

Product Mix

Targets

Capacity

Demand – SupplyPartnership

ManagementReview

Demand Management

S&OP AdjustmentsDemantra RTSOP

Consensus Waterfall

Analysis

Marketing Forecast

Sales Forecast

Constrained Forecast

Resource Rough Cut

Capacity Plan

Production Plan

Cumulative Plan

KPI Scenario

Comparison

KPI Dashboard

Consensus Forecast Inventory Plan

Projected Backlog

Financial Summary

KPI Dashboard

KPI Dashboard

Demand Consensus Forecast

Constrained ForecastProduction PlanInventory PlanBacklog Plan

Approval

Demantra S&OP Overview

Demand Consensus

ForecastKPI Scenario Comparison

Constrained Forecast

Inventory Plan

Backlog

Financial Summary

• Consensus Forecasting

• Sales Forecast

• Marketing Forecast

• Consensus Forecast

• Constrained Forecast

• Constrained Forecast

• Production Plan

• Actual Production

• Production Plan

• Production Adherence %

• Inventory Plan

• Actual On-Hand

Predefined Components

Series

• Constrained Forecast

• Unmet Demand

• Demand Fill %

• Resource Capacity

• Required Capacity

• Available Capacity

• Utilization %

• Projected On-Hand

• Periods On-Hand

• Consolidated View

• Cumulative Consensus Fcst

• Cumulative Constrained Fcst

• Cumulative Budget

Demo

Summary

Summary

• Overview

• Sales and Operations Planning Process

• Demantra Modules

• Focus on Operations

• Demand and Supply Goals

• Manufacturing environment

• Non-manufacturing environment

• Key Performance Indicators

On behalf of the OAUG Demantra SIG

I thank you for your time

Arun Cavale acavale@nexinfo.com

NexInfo

End