demand-planning-consulting

[demand-planning-consulting]

Demand Planning -Business Plan

The Business Plan or the annual Budget often follows the following outline:

Strategic analysis of external factors

Economic

Political

Competitive

Internal Factors

Development of a Sales and Marketing Plan

Calendar Monthly forecast

Operating Budget

Manufacturing Costs

Administrative costs

Sales and Marketing Overheads

Capacity and other bottlenecks

Organizational Consensus

Revisions to Spend and volumes

Management buy-in

Outlining Key risks and opportunities to the Annual Budget

Key process driver is forecast reconciliation and a methodology to determine and analyze exceptions. Reconciliation can often be painful. And it can be made worse by a simplistic process lacking an exceptions methodology. Identifying major variances and diagnosing the root-causes for the variance can quickly result in plan consensus.

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Demand Planning -Business Planning and Budgeting

Conducted as an annual exercise, the business plan is the volume, cost and profit plan for, typically, the upcoming year. This is also referred to as the annual budgeting process. Some companies conduct this as part of the long-range forecasting process, which cover anywhere from three to seven years.

Business planning is critical for every company, while long-term forecasting is indispensable for companies with longer product development cycles. The long-term plan provides the inputs for capacity planning and other long-term expansion initiatives.

It is common knowledge that longer-term forecasts are more erroneous than short-term forecasts. There are more dynamic variables and error processes at play in determining the conditions expected to prevail in the future. So it is also necessary to subject your forecast to a sensitivity analysis to understand the robustness of the forecast if the underlying economic and business environment changes. DemandPlanning.Net has developed a unique methodology to develop long-term forecasting and analyzing forecast sensitivity.

Often the annual Marketing Plan is the driver for the demand information in the annual budget. The Marketing Plan is developed with a volume forecast for the year along with the spending levels necessary to create and sustain the expected demand for the products. Marketing-mix modeling is a key component of developing the Marketing Plan.

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Demand Planning - Exception Analysis

Exception analysis is a method used to identify and examine anomalies or deviations from the usual patterns in data, operations, or processes. It involves closely examining data sets to identify unusual patterns, errors, or outliers that may need special attention or action. By analyzing exceptions, businesses can gain valuable insights, detect potential issues, and make informed decisions to enhance overall efficiency and performance.

“80% of your supply chain errors derive from 20% of your products”

Design, Analysis, and implementation of an exception management approach have helped companies to

Streamline the planning process

Improve forecast accuracy significantly and

Focus on the major supply chain drivers that improve the bottom line

Exception management leverages the 80/20 rule.

We evaluate the end-to-end chain to capture valuable information clusters that drive the underlying business process.

Through our unique methodology and solution, we help clients institutionalize an exception management mentality to improve focus and create value through the planning process. Through this exception management approach, we have achieved impressive results with major corporate supply chains.

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Demand Planning -Consulting model

Our S&OP Consulting model employs the six-sigma methodology of

Define

Measure

Analyze

Improve and Control (DMAIC)

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Demand Planning -S&OP Consulting

Supply Planning

The sales and Operations Planning Process thrives on collaboration and honest communication between key organizational players.

Our process design approach is driven by the understanding of key touch points in the organization and how effective demand and supply communication among these touch points can be improved.

This is a unique process embodying several information-sharing sessions and decision forums, with the final intent to generate an organizational Plan and key Sales and Operations issues for the top organizational manager to decide on.

Our Engagement will start with a quick Diagnostic of the current planning process that will study the financial planning, demand forecasting, and management, rough cut and finished goods planning, and constraints management. We will also analyze the current scorecard and metrics process.

This will be followed by the design and implementation of a customized S&OP process that will be a cross-functional effort with commitment from all players.