Are you adding value to your forecast?

Posted by Jacky Jain on 06-Nov-2017 15:59:54

In today’s fast moving world of growing customer expectations, shrinking lead times, reduced profit margins and inventories, Demand Planners have a big responsibility to act as the first gatekeeper to be able to foresee changes in Demand Signals and accurately make predictions for future. The margin for error is continuously decreasing, as any errors cause a major rippling effect on downstream processes. For example, a change of forecast bias by 5% may induce the following risks;

  • Reduced customer service levels
  • Increased lead times
  • Improper mix of inventory levels leading to possibility of stock outs or over stocked DCs
  • Added costs due to firefighting production builds and expediting fulfilment (air freight)

To cope up with this fast-paced supply chains, new metric must be adopted by demand planners all over the world. One of those is Forecast Value Add. I am going to take you thru details of Forecast Value add and explain how we can use this to improve the forecasting process. I would also be explaining examples using SAP Integrated Business Planning.

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Topics: IBP for demand, SAP IBP, Demand Planning, Integrated Business Planning, Forecast Value Add, FVA

Leveraging VBA to enhance the user experience in SAP Integrated Business Planning

Posted by Steve Rampton on 06-Nov-2017 11:17:18

SAP Integrated Business Planning (IBP) is SAP’s next-generation planning application, which uses the computational power of SAP HANA to enable a truly integrated and collaborative planning process.

SAP have also recognised their past problems with somewhat un-intuitive user interfaces and have invested a great deal of thought into the underlying technology and implementation of the interfaces with which users interact with the system. Of course supply planners are not an easy group to please: they usually work in high pressure environments where time is limited and ease of use vital. To further complicate the issue, the user community for an IBP process is much wider than just Demand & Supply Planning and brings in the Finance and Sales departments among others

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Topics: Excel Add-In, SAP IBP, Integrated Business Planning, VBA

Space: the final frontier – Using SAP IBP Inventory Optimisation to understand your warehousing requirements

Posted by Matt Gilbey on 31-Oct-2017 08:47:50

Warehouse space is one of those things that nearly all supply chains can’t live without. We talk a lot about getting our inventory targets correct, but how often are our targets driven by other constraints such as warehouse space at certain nodes in our network? 

Should such a commodity such as warehouse space drive our inventory decisions, and potentially put customer service at risk? These are big, philosophical supply chains questions which S&OP processes are in place to address – but we can help this process by providing the best information we can. 

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Topics: SCM Optimisation, SAP IBP, Inventory Optimisation, Warehousing, Warehouse Space

SAP SCM (R)evolution: What is SAP Integrated Business Planning about?

Posted by Steve Rampton on 07-Mar-2016 12:02:39

On the 25th February 2016, SAP and Olivehorse hosted the first customer event in the UK covering a Supply Chain Planning cloud solution: SAP Integrated Business Planning. Held at SAP UK’s Maidenhead Offices, specialist areas such as SCM don’t usually attract large numbers but this event attracted nearly 50 attendees. Equally gratifying was that the attendees came from a wide range of industries: manufacturing, pharma, oil and gas, and consumer goods.

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Topics: IBP, SAP IBP