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QAD Demand Management
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Transcript of QAD Demand Management
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QAD Demand Management
Patrick Grace, QAD Solutions ConsultantSeptember 27th , 2011
2011 Fall MWUG Session
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• Forecasting Goals • Solution Overview
- Basic Forecasting- Demand Management
• Demonstration• Summary
Agenda
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• Comprised of Two Words
- Fore
- Casting
• Look Out
• Throw Out
Forecasting Definition
Demand Management
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•Value Chain
•Supply Chain• Purchasin
g• Manufact
uring • Distributi
on
•Demand Chain
• Marketing • Sales • Services
Value Chain
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• Reduce forecast error- At SKU Level
• More time spent in analysis versus hunting for issues- Exception based
• Provide an easy, consistent method for capturing inputs to the forecast- Know accuracy by sources of input- Capture thoughts on adjustments
• Use the forecast and customer orders to drive planning
Typical Demand Forecasting Goals
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• Twelve to Eighteen Month Visibility• More Process Automation
- Takes 10 hours to compile data to get to the sales staff and Export to Excel.
• Ability to Handle Growth- What happens if we double our business?- Getting forecasts from new acquisitions?- What if we decide to drive MRP with forecast?
• It has to be easy enough for the sales force to use and provide input.
Sample Requirements
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QAD Basic Forecasting
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QAD Basic Forecasting
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QAD Basic Forecasting
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QAD Basic Forecasting
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QAD Demand ManagementThe Solution
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• Demand Management:- Extensive statistical forecasting based on history, forecast, or other data
series
- Alerts to notify of exceptional circumstances
- Inventory policies based on forecast variability and service level
- Collaborative forecasting between suppliers and customers
- Sales and Operations Planning
“…actively managing demand signals to better sense demand (think of monitoring consumption instead of orders), [and] incorporating downstream data with a higher frequency
of modeling (weekly or daily)”
-- Source: AMR
Demand Management Defined
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• Demand Management Engine• Collaborative Portal• Inventory Optimization• Rough-cut Planning• Sales & Operations Planning
QAD’s Demand-Driven Suite
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Demand Management
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Collaborative Portal
QAD
Other ERP
SCM
BI
S&OP
QAD’s Demand Driven Suite
Informal
ERP
Excel
SQL
Access
Demand Management
Engine
Inventory Optimization
RoughCut
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Sales & Operations Planning
Demand
Supply
• Demand Planners• Sales & Marketing• Category
Management• Product Management
• Supply Chain • Operations• Engineering• Logistics
Actual Results Reviewed & Analyzed
Re-Forecast & Consensus Meeting
Forecast Supply
Consensus
Forecast Demand
Executive ReviewResolve IssuesSet Direction
Determine Strategic Impact
Executive Review Meeting
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• Forecasting• Communicating• Life Cycle Management• Optimizing• Balancing• Planning• Measuring
Assisting the Supply Chain
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Forecasting Robust statistical
engine Error tracking Allocation EDI, POS, and
on-line data Planning bills
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Statistics, Methods & Techniques
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• Top Down• Bottom Up• Middle Out
Hierarchies
PRODUCT CUST DIST CENTER
FAMILY MARKET
MARKET
DEMAND-SIDE HIERARCHY
PRODUCT CUST DIST CENTER
PRODUCT DIST CENTER
PRODUCT
FAMILY
SBU
SUPPLY-SIDE HIERARCHY
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• Share information• Exceptions• Promotions or events• Reporting• Security
Communicating
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• Specific calculations• Profiles • Cloning/same as• Collaborate
Life Cycle Management
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Optimize:• Safety Stocks• Service Levels• Order Points• Periods of Coverage• Lead Times
Optimizing
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• Balance Supply & Demand through key resources- Equipment- Raw Materials- Labor- Subcontracting
• What-if Analysis
Balancing2011 Fall MWUG Session
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• Link medium to long term operations- Business goals- Operational planning- Financial planning
• Model effect on supply capabilities and financials
Planning2011 Fall MWUG Session
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• Improved visibility• Enhanced decision
making• Reporting and analysis
capabilities for all levels of the enterprise.
Measuring2011 Fall MWUG Session
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Standard Reports
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Comparison Excel Output
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DemonstrationQAD Demand Management
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• More sophisticated forecasting techniques• Forecast collaboration tool• Changes to forecast easily uploaded• Measure Actual to Forecast accuracy
- Exceptions and Filters
• Document reasons for forecast adjustments- At series level or individual observations
• Aggregate Forecasts different views- Hierarchy Manager
• Help with setting safety stock levels• Rough Cut Capacity Planning
- Planning for projected warehouse requirements
Summary
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QAD Demand Management
Thank youFor Attending!!
2011 Fall MWUG Session