I2 Technologies, Inc. Confidential1 i2 TradeMatrix Collaboration Planner Demand Collaboration Demo Script November, 2000

i2 Technologies, Inc. Confidential 1

i2 TradeMatrix Collaboration Planner

Demand Collaboration

Demo ScriptNovember, 2000


Contents

Introduction Background Introduction on CPFR

(Collaborative Planning, Forecasting and Replenishment) workflow

Case description TM-DC Demonstration Feature function discussion


Introduction

The purpose of this document is to explain how i2 TradeMatrix Demand Collaboration (henceforth called TM-DC) is used to support collaborations between manufacturers and retailers. The document describes a CPFR collaboration workflow and demonstrates how to manage exceptions in collaborations. The collaboration process begins with the customers and sellers making sales forecasts for a particular item and ends with the generation of committed orders for an item.


Background Information on CPFRVoluntary Interindustry Commerce Standards (VICS) created the CPFR guidelines to standardize the replenishment planning process and reduce the variance between supply and demand. Below is a detailed description of the steps in a collaboration. TM-DC automates most of the steps described below.

Steps in Collaboration1. Develop a front-end agreement : An agreement is made between the

manufacturer and the retailer which determines how the collaboration is tracked, which information is shared between the parties, the frozen forecast period and how to resolve forecast differences.

2. Create a joint business plan : A more detailed implementation of the front-end agreement which includes item management profiles, such as the order minimums and multiples, lead times, order intervals, safety stock, frozen forecast period, and acceptable differences in forecasts. A calendar of promotional events is also established.

3. Create a sales forecast : The parties use a combination of point-of-sale data, causal information, and events to create a forecast of end consumer


CPFR (continued)

4. Identify the sales forecast exceptions : The two parties' forecasts are compared and forecast differences falling outside the exception criteria are flagged. The parties investigate the cause of the differences.

5. Collaborate to resolve sales forecast exceptions : The parties resolve the exception by agreeing to modify their forecasts so that they are in agreement

6. Create an order forecast : Once the period of collaboration on the sales forecast has ended, the order forecast is computed based on the sales forecast and the desired inventory levels at the end of the period, plus safety stock.

7. Identify the order forecast exceptions : Similar to step 4.

8. Collaborate to resolve order forecast exceptions : Similar to step 5.

9. Generate the Order : The frozen period of the order forecast is exported for execution by the manufacturer.


CPFR TerminologyCPFR Data Measure DescriptionCustomer Sales Forecast The customer’s forecast of sales of a particular item to the end

customers.

Supplier Sales Forecast The supplier’s forecast of sales of a particular item to the endcustomers.

Agreed Forecast Some function of the customer and supplier sales forecasts.(Computed)

Safety Stock The number of items the customer wants to keep in inventoryas a safety buffer.

Starting Inventory The customer’s estimate of his inventory of a particular itemprior to getting what he orders from the supplier. Thecustomer uses this in generating an order forecast from asupply forecast.

Customer Order Forecast The buyer’s forecast of his orders for the item to the seller.(Computed)

Supply Commit The number of items the supplier commits to deliver to thecustomer. (Computed).

Customer Request The number of items the customer finally requests from thesupplier. (Computed.)


Case Description

‘BodyCovers’ and ‘ClothesForYou’, two major garment stores, have recently embarked on a collaborative demand planning and forecasting initiative.

Their main objective is to increase the accuracy of demand planning and forecasting processes by lessening the demand signal distortion.

This is expected to result in reduced inventory, less obsolescence, increased customer service and improved responsiveness to market demands.

Both the stores have clothes for men and women, and have suppliers for each category. The men's wear is supplied by ‘Fashion’ and women's wear is supplied by ‘Tailors’. The customer (retailer) stores have sites at different locations in the country.


TM-DC DemonstrationThis self-paced demo is used to illustrate the functionalities and the capabilities

of i2 Technologies’ TM-DC product – version 5.0 (TM 5.0 DC). The workflows in this demo closely follow the CPFR guidelines.

Following are the entities in this demo:

RetailersBodyCovers, ClothesForYouSuppliers Fashion, TailorsItems Shirts, Trousers, T-Shirts, Jeans, Skirts, Tops, Tank tops,

DungareesSites For ClothesForYou – 5th Av., 10th Av., Evanston,

Schaumburg, DallasFor BodyCovers – Golf Mills, Gurnee Mills, Site A, Site B

Supplier and Retailer can have different names for the same item, and it can be mapped by the broker. For this demo, they are same.

Also for this demo, we consider the collaboration between ‘BodyCovers’ (Retailer) and ‘Tailors’ (Supplier) involving the item ‘Skirts’ at the site ‘Golf Mills’. Any other collaboration can be demonstrated in a similar manner.


Steps of the Workflow This demo illustrates the following:

1. Front end agreement between the customers and suppliers.

2. Joint business planning where exception tolerance settings are maintained.

3. Customer and supplier forecasts using different hierarchies.

4. Forecast mismatch resolution process between the suppliers and the customers.

5. Messaging between suppliers and customers, and also to outside parties.

6. Product level exception tolerances.

7. Handling of promotional events.

8. Data upload and download.


Retailers’ Product Hierarchy

For BodyCovers and ClothesForY ou

S h irts Trou sers

F orm a l

TS h irts Jean s

C asu a l

M en sW ear

S k irts Top s

F orm al

Tan kTop s D u n g arees

C asu a l

W om en sW ear

C lo th es


Supplier’s Product Hierarchy

For Tailors

S k irts Top s Tan k top s D u n g arees

C lo th es

For Fashion

S h irts TS h irts

U p p er

Jean s Trou sers

L ow er

C lo th es


Retailer’s Region Hierarchy For BodyCovers

G olf_ M ills G u rn ee_ M ills

C h icag o

S ite_ A S ite_ B

L osA n g e les

U S A

For C lothesForY ou

5 th A ven u e 1 0 th A ven u e

N ew Y ork D a llas

E van s ton S ch au m b u rg

C h icag o

U S A


Supplier’s Region Hierarchy

For Fashion and Tailors

M id W es t E as tC oas t W es tC oas t

U S A


Demo

Start the server by going to Start>Programs>i2 TradeMatrix DC>Start TradeMatrix Server

On the browser, go to the following address http://localhost/tm.Login.jsp Login as follows:

Username: BodyCovers

Password: changeme

***** Note that these are case sensitive **** Uncheck the “Use Default Role” box. Select a language (For this demo, we use English)

After all the entries, the screen should look like:


Uncheck this box to see all the roles


You will see that BodyCovers has 2 roles: ADMIN and CUSTOMER. Click on the BodyCovers-CUSTOMER hyperlink to log in as a customer.


The following screen appears. Note that the user name and the role are shown on the top of the screen. On the left are the various workflows. Towards the bottom left corner are links to bookmarks and rest is the main work area.

Workflows

Bookmarks

User Name & Role

Work Area


Front End Agreement First step in any collaboration is to establish Front End Agreement with a supplier. Navigate to Front End

Agreement > Agreement. Select Tailors from the drop down supplier list and press View. The following screen is seen. One can edit the agreement and click Update to store it.


Joint Business Plan Next step is to enter the exception tolerances for the joint business plan. Navigate to Joint Business

Plan > Collab exception tolerance. Select Tailors from the drop down supplier list and click View.


You are prompted to select the products / items for which you want to set the exception tolerances. Select all the items under the product hierarchy of Tailors by selecting the radio button against Tailors > Clothes and press View.


The following screen is displayed. Since the exception tolerances have not been set for different data measures, the entries are blank as shown.

Input the value 10 (expressed as %) as agreeable +/- tolerance in the time buckets and click update. This updates the data base.

We can have absolute values instead of percentages. That need changes in the corresponding java files under \cfg\ex\/problem folder.


A message is shown which tells that the tolerance limits were uploaded successfully. Click on Close.


To verify whether the upload was successful, navigate again to Joint Business Plan > Collab exception tolerance, select Tailors from the drop down supplier list, press View, select the radio button against Tailors > Clothes and press View. The following screen is seen showing successful upload.

Uploaded values have been stored successfully


Permissions/Privileges: We have the provision of setting permissions via 2 modes: batch mode and from the UI.

The Joint Business Plan>Phase editability editor link is used to give read/write/both privileges.

Clicking on this link brings up the following screen


Select Tailors from the drop down supplier list and click on View. We are prompted to select the products/items for which we want to set the

privileges. Click on Tailors and select the radio button against Clothes. Click View. The following screen comes up where we can set privileges as shown.


Once we have set privileges, click Update. A message, as shown below, comes up saying that the phase edit masks have

been updated successfully.


Similarly we can use the Phase Editor to define the phase length of Frozen and Forecast phases.

Click on Joint Business Plan>Phase Editor. Select Tailors from the drop down supplier list. Click View. Click on the hyper linked Tailors. Click the radio button against Clothes and then click View. The following

screen comes up where you can define the phase lengths.


Collaborations: Product Hierarchy To see the product hierarchy for BodyCovers, navigate to Collaborations >

Product Hierarchy and click on the hyper linked BodyCovers. Follow the links to reach the items. One such hierarchy is shown below.

Product HierarchyItems


Collaborations: Region Hierarchy Similarly, to see the region hierarchy, navigate to Collaborations > Region

Hierarchy and click on the hyper linked BodyCovers. Follow the links too reach the sites. One such hierarchy is shown below.

Sites

Region Hierarchy


Collaboration between BodyCovers and Tailors can be viewed in many ways. You can navigate by either of the following links: Supplier-Item-Site or Site-Supplier-Item or Site-Item-Supplier.

Lets look at a collaboration by Supplier-Item-Site. Navigate to Collaborations > Supplier-Item-Site. The following screen is seen.

If we click on this arrow, it shows all collaborations between BodyCovers and Tailors


Click on the hyper linked Tailors, select an item, say Skirts, and select a site, say Golf Mills. A Multi Collaboration Hybrid View with all the collabs which meet the specifications come up as shown.


Data Measures

The following data measures are used in this demo: Customer Base Forecast Customer Promotion Forecast Supplier Base Forecast Supplier Promotion Forecast On-Hand Inventory (for the customer) Safety Stock (for the customer)

Note: Since we are logged in as a customer, we can only edit customer’s data measures (i.e. Customer Base Forecast, Customer Promotion Forecast, On-Hand Inventory and the Safety Stock). The other data measures are not editable by the customer since they belong to the supplier.


Computed Data Measures

Based on the previous data measures, the following data measures are computed: Total Customer Sales Forecast = Customer (Base + Promotion) Forecast Total Supplier Sales Forecast = Supplier (Base + Promotion) Forecast Total Order Forecast = Total Customer Sales Forecast + Safety Stock – On-

Hand Inventory Total Sales Forecast Mismatch = (Total Customer Sales Forecast – Total

Supplier Sales Forecast )*100/Total Customer Sales Forecast Order Forecast Mismatch = (Total Order Forecast – Vendor Commit)*100/Total

Order Forecast Base Forecast Mismatch = (Customer Base Forecast – Supplier Base

Forecast)*100/Customer Base Forecast Promo Forecast Mismatch = (Customer Promotion Forecast – Supplier

Promotion Forecast)*100/Customer Promotion Forecast


Classification of Mismatches

Remember, we had set tolerance value as 10% under the Joint Business Plan > Collab exception tolerance workflow.

The mismatches are classified as Low, Medium or High depending upon their percentage value. If the calculated value is -

Between 10% and 15%, then it is said to be ‘Low, Between 15% and 20%, it is ‘Medium’ Above 20%, it is ‘High’Note: These limits can be changed depending upon the requirements in the \cfg\

ext\prob\(data measure name).java files

For e.g. Total Sales Forecast Mismatch = (1200-1050)*100/1200 =12.5%; hence low

Also Order Forecast Mismatch = (1200-1000)*100/1200 = 16.7%; hence Medium

Similarly, other computed data measures are classified.


To go from a Multi Collaboration view to a Single Collaboration View, click on the yellow arrow. The following screen comes up.


Suppose BodyCovers wants to know what is Tailors’ base forecast for Womenswear in a region, say Chicago.

Navigate to Collaborations>Product Hierarchy and make the selections as shown below:


Once we click Search, the following screen comes up. Note that there are 4 items under Womenswear and there are 2 sites in Chicago. Hence the total value is 8 times the forecast value of 1 item at one site, which is 900 in our demo Hence the shown value is 7200.

4 times the value of 900


Similarly, lets say that the supplier Tailors wants to find out how much is the total customer base forecast for women clothes in a region, say Midwest.

Log off and log in again with the following parametersLogin Name:Tailors Password: changeme

For this demo, do not uncheck the ‘Use Default Box’ so that we can log in as a Supplier.

Do not Uncheck


The following screen appears. It looks the same as that for the customer except for the fact that we are logged in as a supplier.


Navigate to Collaborations>Product Hierarchy and make the selections as shown below.


After clicking on Search, the following screen comes up. Note that there are 2 customers, each needing 4 products at 2 sites each. Hence

the value seen is 16 times the single value of 1000.

16 times the value of 1000


Note that this aggregation of forecast measures depends on roll up dimensions which are specified in the server\cfg\Web.properties file.

For more information, refer to the document titled “Aggregation by Dimensions”


Exception Resolution

Exception Resolution is done by collaboration and modifying the forecast values. Now we will see how the application addresses this issue.

Navigate to the same collaboration by using the Collaborations > Customer-Item-Site link. Pick BodyCovers as the customer, Skirts as the item and Golf_Mills as the site. The following screen comes up showing the MCV.


Note that the same data measures are seen. But now we can only edit the supplier’s data measures. The customer data measures are not editable since we are logged in as a supplier. Also the same exceptions are flagged.

Can only edit the supplier’s data measures


Now Tailors sees the exceptions based on BodyCovers requirements. It reviews its data measures and updates its Base Forecast and Promotion Forecast to 975 and 175 respectively.

Make the appropriate changes and click Update.

Updated Values


A message saying pit data was updated comes up. Click OK. The following screen comes up. See that some of the exceptions have been resolved / reduced because of Tailors’ update

Resolved

Reduced


Feature FunctionA feature supported by TM-DC is ‘Messaging’. A user can send messages to

another user to convey information.

Click on the yellow arrow to go to the Single Collab View.


The following screen comes up showing the Single Collab View (SCV). The Message tab is just besides the Hybrid View tab.


Click on the Message tab and it takes to a screen with options to compose message, delete message etc. as shown.


Click on the Compose button to send a message to BodyCovers. The following screen pops up. Type in the message and click Send. A confirmation message comes. Click on Close.


To see that the message has been sent, navigate to Issues>Alerts>Sent. You will see a list of messages that Tailors has sent. Clicking on the hyper linked subject will take you to the message.


To verify that the exceptions have been modified for BodyCovers too, log out and log in again as BodyCovers. Navigate to the same Supplier-Item-Site combination (i.e.Tailors-Skirts-Golf_Mills) . We will see the same changes in its MCV.


Navigate to Issues>Alerts>Received. You will see the message from Tailors.


Click on the hyperlink to go to the SCV. You can see the changes made by Tailors. Also note that since the range of buckets here is more than the buckets for which Tailors modified its data measures, hence exceptions are not resolved for the complete timeline.


To see the message sent by Tailors, click on the Message tab and then click on the hyper linked subject. The following window pops up showing the message.


Feature FunctionWe can also send messages to users outside the firewall.

If we are logged in as Tailors, click the radio-button against “Attach to object and copy to mailing list” and specify the mailing list. Then the message goes to all the members of that mailing list.


In this demo, we have defined a mailing list called ‘outside_mailing_list’ and its members are Tailors, Fashion, BodyCovers and ClothesForYou.

Go to www.yahoo.com and click on ‘Check Email’ Yahoo ID: [email protected] Password: changeme


After we click on the Sign In button, the following screen comes up.


Click on the hyper linked Inbox. Since there are 4 members in the mailing list and they have the same mailing address, so there are four messages.


Click on the hyper linked subject of any message to read it.


Viewing the Problems To look at problems, navigate to Issues>Problems. This leads to the Problem

Summary screen as shown below. We are again logged in as BodyCovers.


Click on one of the hyper linked category, select the collab and click Multi Collab. This takes to the same MCV.

Similarly, one can view problems using other links under Issues.


Other ways to find collaboration between a supplier and customer is to use the Collaborations > Multi Collab or Collaborations>Multi Collab by Hierarchy workflow.

As an example, click on the Multi Collab link. The following screen comes up.


Make the appropriate selections i.e.Tailors-Supplier, Golf_Mill, Customer Item= Skirts and pick the data measures you want to see.


When we click Search, the following screen comes up showing the collaboration found.

Click here


If we click on the yellow arrow, it takes us to the same SCV as before.

Similarly we can use the other link to search for collaborations.


Clicking on Home at any time takes us to the first page. For help, click on Help and it opens a User Help manual in a new window.

Click here for User Help Manual


Utilities In the Workflow area, there is a Link called Utilities. Open it.


You will see a lot of options like Change Password, Change Role etc. These are the various utilities provided in the application

As an illustration, click on Change Password.


The following screen comes up. Here you can change your password for future logins.

Similarly, one can explore other utility workflows.


Feature Function An important feature of TM-DC is the ability to create on the fly product /

region groups. This is done so that the user can just look at the products / region which he/she wants and does not have to go through the entire hierarchy.

Navigate to Working Groups > Organize Group. The following screen comes up.


Type a name, say ‘Favorite for BodyCovers’, for the Top Level Favorite Group. Click Add Group. The following screen comes up.


Clicking on OK takes you to a screen where you can start adding products to the group created.


Click on the hyper linked Favorite Hierarchy. The name of the group created comes up as a hyper link.


Click on the hyper linked name. The following screen comes up which shows that there is nothing added to BodyCovers’ favorite hierarchy so far.


Now we start adding products to this hierarchy. Suppose we just want to add Jeans to this hierarchy. Click on Add Favorite(s). The following screen comes up giving a link to

BodyCovers’ product Hierarchy.


Navigate through BodyCovers>Clothes>Menswear>Casual. Check the box against Jeans. Click Add. The following screen comes up.


Clicking on OK takes us to a screen where you see BodyCovers’ Favorite Hierarchy as a hyper link.

Navigate through it to see that it only has Jeans in it.


Now suppose BodyCovers wants to add Skirts to its Favorite hierarchy. Click on Add Favorite(s)

Click


Navigate through BodyCovers>Clothes>Womenswear>Formal. Check the box against Skirts and click Add. Again navigate through the Favorite Hierarchy to see Jeans and Skirts as

shown.


Search

One can search for collabs based on a particular criterion. To do this, click on the Search link on the workflow area. The following screen comes up.


We can search for collabs based on Customer Item / Supplier Item / Site / Supplier. (Note that if we are logged as a supplier, we can search based on Customer rather than Supplier)

For this demo, lets search on the basis of Customer Item. Type in Skirts in that field and hit Search.


The following screen comes up showing all the collaborations involving the item ‘Skirts’.

Clicking on the yellow arrow will take us to the same SCV as before.

Click Here


This is the same SCV as seen before. Similarly, one can perform search based on other parameters.


Feature Function

An important feature of TM-DC is the ability to have Product Level Tolerances.

We had Joint Exception Tolerances defined previously. These are the tolerance limits for collaborations. Suppose we are interested in knowing the data measures and mismatches at the product level only. To classify those mismatches, we define Product exception tolerances.

On the Workflow, open the Product Exception Tolerance link. Navigate to Product exception tolerance editor. The following screen shows up.



Click on the hyper linked BodyCovers to go into its product hierarchy. Keep going till you reach the item level.The following message comes up saying

that product level exception tolerances can not be defined at item level.


Lets say you want to define tolerance limits for Womenswear. Navigate through the product hierarchy till you reach the following screen.


Check the radio button against Womenswear and click View. The following screen comes up where you can enter the tolerance values for

different buckets.


For this demo, enter the value ‘5’ in each cell and click update.

Click here


A message comes saying that the tolerance values were updated successfully. Click OK.


To verify successful update, navigate through BodyCovers>Clothes, click the radio button against Womenswear.

Click View. The following screen comes up showing successful update.

Successful Update


Note that the tolerances are passed on the lower members of the hierarchy. For e.g. navigate to BodyCovers>Clothes>Womenswear. Click on the radio button against Formal and click View. The following screen

comes up showing that the same tolerance limits are set for Formal.


To see how do these product tolerances work, open the Collaborations workflow and click on Product Hierarchy.

Select Tailors as the supplier, and select all the data measures to view. In the product hierarchy, navigate through BodyCovers> Clothes>

Womenswear and check the box against Formal. In the region hierarchy, navigate through BodyCovers>USA>Chicago and

check the box against Golf_Mills.


Once we click on Search, the following screen comes up. Note that now the exceptions are flagged on the basis of the Product

Tolerance value of 5, instead of the Collab Exception Tolerance value of 10 defined earlier.


Values in the buckets are the aggregated values of all the items for the selected product.

In our example, the product Formal has 2 items: Skirts and Tops. So the bucket values are aggregated values of these 2 items.

Exceptions are flagged for the mismatch between the aggregated supplier and customer values based on the product exception tolerance value of 5.


Feature Function

Another feature of TM-DC is its ability to accommodate Events. Events are marketing promotions, and consist of activities. Each activity has targets, which are the products and items affected by it. Open the Business Event link. You will see a lot of options like

Create Event Delete Event Update Event History Calendar (to retrieve an event)

For a specific event we can Create a new Activity Copy an existing activity and edit it Update an Activity Delete an Activity


To create an event, click on Business Event>Create Event. The following screen comes up. Click on Next.


Fill in the required information for this event, and click Next.


Following screen comes up. Since no previous activity is associated with the event, so we create a new one.

Click on Add.


Create a new activity by clicking Next. Fill in the required information for the activity on the screen that comes up and

click Next.


Fill in the necessary fields on the screen that comes up and click Next.


The following screen comes up where we can specify to which product-site or item-site combination does this promotion apply.


Select Tailors from the supplier list. Select BodyCovers>Clothes>Womenswear from the product / item list. Select BodyCovers>USA>Chicago>Golf_Mills from the region / site list

Click here


After we click on Include, the following screen comes up indicating that the particular combination was included.

But this also includes Dungarees on which we do not want promotion. Hence we click on Womenswear>Casual>Dungarees and click Exclude.

Click Here


The following screen comes up indicating that the item Dungarees has been excluded.


Because of this event, BodyCovers’ data measures change, since it expects a higher demand. We can modify this in the MCV.

Make the appropriate changes and click Update. The following screen comes. Exception Resolution can be done as explained earlier in this demo.

Change in promotional forecast

Corresponding Exceptions


Feature Function

TM-DC allows users to upload/download data so that the user can use the flat files for its own planning engine.

For example, consider the following case. BodyCovers wants to download these data measure values for the month of November,2000.

Supplier Base Forecast Supplier Promotional Forecast

Navigate to Utilities>Download Files and ,make the appropriate selections as shown on the next page.

Uncheck the ‘Delta Only’ box so that the entire data is downloaded and not just the changes since the last download.


After making the selections, the screen should look like the one shown below. Click Download.


The following message comes up giving a key to check the status of the download process.


Go to Issues>Alerts>Received and you will see a hyper linked subject and a link to the download data.


If you click on the hyper linked subject, it opens a screen as shown.


Close this window and click on the link to the download data. A message window opens up as shown below. Click on the radio button against “Save this file to disk” and then OK.


Save the file in a location of your choice. Open this file in Notepad to see the download data, which is shown below

This file can be used by BodyCovers for his planning engines.


If instead of saving this file, we click on the option “Open this file from its current location”, the screen prompts you to specify which program you want to use for opening the file.


Select WordPad. The following screen opens up showing the downloaded data.

Documents

I2 Technologies, Inc. Confidential1 i2 TradeMatrix Collaboration Planner Demand Collaboration Demo Script November, 2000