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

2011 Fall MWUG Session

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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

2011 Fall MWUG Session

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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

2011 Fall MWUG Session

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QAD Basic Forecasting

2011 Fall MWUG Session

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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