Sales & Operations Planning with DemandCaster

1 | Plex Systems, Inc. Privileged and Confidential Information. Copyright ©2016 Plex Systems, Inc. All rights reserved.

DemandCaster S&OPMoving from Reactive to Proactive Planning

The Bullwhip Effect

• The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as one moves deeper into the supply chain.o Dependent demand processing

o Forecast errorso Adjustment of inventory control

parameters with each demand observation

o Lead time variability (forecast error during replenishment lead time)

o Trade promotions and forward buying

o Allocation rules of supplierso Shortage gaming or rationingo Lean and JIT style management of

inventories and a chase production strategies

o Lot-sizing / Lot-Control o Cost-based lot sizing o Shelf Life and Expiration of Finished Goods

Sales and Operations PlanningPeople, Process & Tools

Key Assumptions and Recommendations

Decisions andActions

Risk and Opportunities

Issues forEscalation

Major ChangesExplained

Why Should You Adopt S&OP?

Source: Top Performer Benefits of Effective Sales & Operations Planning – The Hackett Group

Supply

Demand

Monthly

Demand Planning

Week 1

• Generate [Statistical] Demand Plan

• Assess previous period assumptions

• Incorporate sales and customer input, including Trade Promotions

• Generate Revenue Projections and forecast statistics

Supply Planning

Week 2

• Generate Supply Chain Plan

• Generate Material Requirements and Production Plans

• Generate Rough-Cut Capacity Plan (optional)

Pre-S&OPMeeting

Week 3

• Generate S&OP Reports and Metrics

• Document Supply Chain gaps & resolutions

• Document recommendations and agenda for executive meeting

ExecutiveMeeting

Week 4

• Review recommendations and make decisions

• Resolve remaining issues

• Review KPI’s

• Make adjustments and Approve [Consensus] Plan

Sales & Operations Best Practices

6 | Plex Systems, Inc. Privileged and Confidential Information. Copyright ©2016 Plex Systems, Inc. All rights reserved.

Looking for more information?Check out our Resource Center in the event console:

• Customer Case Studies• Register for weekly demos• Detailed product tutorial videos

05/02/2023| Plex Systems, Inc. Privileged and Confidential Information. Copyright ©2016 Plex Systems, Inc. All rights reserved.6

Contact

Jim DrakeSales Director, DemandCaster Advanced Supply Chain Planning at Plex Systems, Inc.

jdrake@plex.com

Erick TomaszewskiDemandCaster Account Executive: Sales Forecasting & Supply Chain Optimization.

etomaszewski@plex.com