Consulting

Effective demand management still eludes most supply chain teams

Consulting

Demand Management doesn’t just happen, it requires commitment, discipline, and effort.

Organizations often lack the internal depth of expertise and therefore require external subject matter experts.

Our Business Transformation Consultants are specialists who can help your organization move from transformational thinking to transformational execution.

We’ll complete the assessment, perform the analysis, identify the opportunities, and deliver results realizing breakthrough performance.

Our consultants will outline the Mission, Goal, and Strategy.

Mission
Create a Best in Class organizational Demand Forecasting process.

Goals

  1. Increase Forecast Accuracy by W%
  2. Inventory reduction by $XM,
  3. Working Capital improvement of Y%
  4. Service Levels increased by Z%.

Strategy

  1. Incorporate a Baseline Statistical Forecast
  2. Perform Demand Segmentation Analysis
  3. Metrics & KPIs defined
  4.  Assumptions Documented
  5. Monthly Sales & Operations Planning meeting.

Strategic Value Assessment

Have the “As-Is” process evaluated to better understand the inputs & outputs.

  • Hierarchy Level (Model, Product, Customer, Inventory Location)
  • Time Period and the Time Horizon
  • Data (Order, Shipment, Revenue, Gross Profit)
  • Performance (Forecast Accuracy, MAPE, FVA)

Identify both “quick wins” and future value added opportunities.

  • Is the process automated, timely, and standardized?70%
  • Does the process incorporate as great a scientific progression as possible?85%
  • Are you managing by exception?75%
  • Is demand defined correctly?80%
  • Are you using the best possible the level of engagement?85%
  • Are the assumptions documented?65%
  • Is there a rationale for the forecast?70%

Process Design

“Reengineer the process first”

Why not formulate a road map to become best in class?

Start with the best baseline forecast, learn how to challenge Sales
& Marketing initiatives, and create action plans for the risks & opportunities.

Understand the operational, tactical, and strategical forecast.

A best in class process leads to improved revenue forecasts, lower inventory levels, and enhanced profitability.

Finally, implement solutions that meet a need, solve a problem, or take
advantage of an opportunity to meet the organizations goals.

 

 

PERFORMANCE & PROCESS METRICS

“You can’t manage, what you don’t measure”

Go beyond merely gathering and reporting data, by turning data into
information, for more informed decision making.

Evaluation of the current metrics pertaining to logical flaws and
recommendation of additional metrics.

If all business decisions are financial, then our metrics should be financial…

BUT, Operational Performance drives Financial Performance, not the other
way around. Have you identified the Key Performance Indicators (KPIs)

  • In depth Forecast Accuracy / Error Measurements
  • Perfecting the Tracking Signal
  • Effect of Ship or Cancel on Accuracy
  • Sales Performance
  • Backorders or Perfect Order Measurement?
  • Cause & effect of Excess & Obsolete Inventory
  • Safety Stock including formulas for highly seasonal products
  • Orders to Net Sales report to meet Business Plan targets
  • Delta measurements

SALES & OPERATIONS PLANNING

“The real value comes from…”

Leveraging S&OP as a framework to coordinate end-to-end collaborative planning between:

  • Demand
  • Finance
  • Sales
  • Marketing
  • Product Development
  • Supply Chain

Improve efficiency, meet strategic goals, and optimize profit.

Industries

Consumer Packed Goods, Food & Beverage, Cosmetics, Apparel & Accessories, Electronics, Medical Devices & Suppliers, and Chemicals