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 through 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

How to optimise your buffers: Demand Driven MRP vs MRP

Posted by Jonathon Vaiksaar on 09-Oct-2015 16:29:00

When discussing Demand Driven MRP (DDMRP) one question often comes up:
How much benefit of DDMRP is due to daily planning?

This is driven by the understanding that reviewing your plan more frequently will enable you to make quick changes to demand. This is true. However, the difference between DDMRP and MRP remains that whilst MRP reacts to the changes of inaccurate forecasted demand, DDMRP reacts only to confirmed demand, not forecast. 

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Topics: DDMRP, SAP IBP, Demand Driven Adaptive Enterprise, Integrated Business Planning, DDAE, DDS&OP, Demand Driven Replenishment