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• W240597035 abstract "The implementation of enterprisewide planning components without the end-to-end business process in place usually fails to yield a consistent and repeatable process ... optimizing the components of a system is not the same as optimizing the system as a whole ... the tightest integration of supply and demand is possible where supply is triggered by actual customer usage. Just ask any project manager, How's your project going? The usual answer is Great! But, if you ask any C-level manager in the company, How's your forecasting process going? The usual answer is Broken! Why is it that failure seems to be the normal perception within the domain of forecasting? Is it because demand is hard to predict? Or, is it because ownership and organization of the relevant driving processes are complex and always in a state of flux? Or is it simply because the buck stops in the forecasting function, and all the failings in the supply chain processes are believed to be caused by it? Experience shows that the success of a forecasting (demand planning) system depends very much on how well the system design integrates the supply with the demand. The alignment of supply with demand, though it is a matter of plain common sense, is rarely fully realized except on most aggregated levels of the business. The Coming, Inc., Center of Business Excellence, believes, Supply Chain Management is about uncertainty in matching the supply with demand. The mismatch between them arises from the inability of vendors and manufacturers to anticipate their demand particularly at a time when the market is changing. Take an example of SSL International, a major global healthcare organization, that develops, manufactures and markets premium healthcare brands, such as Durex condoms and Scholl footwear. The business is composed of multinational commercial units charged with forecast and inventory responsibility, and multinational manufacturing sites charged with capacity and schedule accomplishment as well as with central marketing and planning functions. Product line distribution and manufacturing are intertwined around the globe. All this makes their business highly complex. It would be nice if there were an end-- to-end line of business with supply and demand managements under one roof, and the business lines were focused on a concentrated market in the same geographical location. But, unfortunately, it does not happen that way. In this kind of situation, how should the forecasting function be deployed to align supply with demand? WHERE TO START No business takes an easy step when it comes to implementing a supply and demand planning and execution system. The options and scenarios are many: get demand right first; get supply right first; tackle the business by geography; or tackle the business by product line. There is even the debate about the 80-20 rule, where 80% of the value lies in 20% of the customers. Should you concentrate first on the valuable few? If you do so and succeed, even then have you proved anything? But if you fail, the entire project will be in jeopardy. So, the risks are high and the safest thing is to strive for quick success grasping the low-hanging fruit. If you do that way, even then what have you accomplished? With this kind of success, would you be able to convince the doubters? They will say that the proof still resides in handling the remaining critical few. If you hold the variable of supply-side (legacy systems and processes) constant, there will be great benefit from improving demand first. But no amount of demand planning can overcome a truly broken system of execution. If schedule and/or delivery performances are substandard and below the competitive threshold, then demand planning, no matter how good it is, will add very little value to the business. Nevertheless, it is good to start with a demand planning system, because many aspects of the business depend on it. …" @default.
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• W240597035 title "A Survivor's Guide to Integrated Demand and Supply" @default.
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