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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
We’ve all heard the bad news about how the down economy has affected consumer packaged goods (CPG)
manufacturers like you. You’re dealing with historic inventory lows, excessive promotions, up-and-down
demand, competition from private labels, and increasing regulation.
It may seem like the end of the world, but in reality it’s the beginning of a new world where creating agility in sales
and operational planning (S&OP) spells the difference between hanging on by your teeth, or charging head-on
into the lead.
You can accept the status quo, or you can take steps to rapidly and cost-effectively adapt to change.
It’s your choice.
HOW LOW CAN YOU GO?
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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
It takes agility for a gymnast to flip over backward. And it takes agility for you to master the S&OP process.
Once you’re agile, you can better prevent stock outages and lost sales—and get rid of unnecessary inventory.
Plus, you can improve your promotional planning, and enjoy a higher success rate with new-product
introductions.
Imagine being able to react to demand swings more quickly and profitably.
You can make it happen.
RISING UP IN A DOWN ECONOMY.
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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
YOU DON’T NEED TO JUMP THROUGH HOOPS. In this case, that means you don’t need to rip and replace your existing software. And you don’t have to hire
a whole new staff.
But you do need to implement an integrated, open-architecture S&OP solution designed with your needs
in mind. You’ll be able to plug in new solutions that continually drive improvements. Then you can make
better decisions, faster.
NOW is the time for you to make changes that will increase your agility—so you can move quickly when the market demands it, and take
advantage of short-lived opportunities.
NOW is the time to get rid of standalone solutions and processes that tie you to lost sales opportunities, unwanted inventory, and
unprofitable promotional pricing.
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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
You know how your vision is blurry if you don’t wear your
glasses? Well, the same thing happens with demand. If you
don’t have the right tools to bring all the relevant factors into
focus, you can’t see clearly.
Basically, you can’t practice agility in S&OP if you can’t
clearly predict demand. But there’s more to it than tracking
actual demand, historical forecast accuracy, and inventory
investments. Take the example of sunscreen. Sunscreen sales
go up around Memorial Day, the Fourth of July, and Labor Day.
But in the case of July 4th, the amount of increase depends on
the day of the week the holiday occurs (for example, Thursday
versus Sunday). You also need to understand the demand’s
origin, and price dynamically to match planned supply to
demand. For instance, you might be able to increase your profit
by selling more 2-ounce bottles of sunscreen to Kroger than by
selling gallons of sunscreen to Sam’s Club.
With Infor™ SCM Demand Planning, you get better
visibility into changing consumer demand, so you can
consistently improve service levels and reduce your inventory
investment. Plus, you can quickly identify issues and
opportunities, so you can manage multiple channels and better
deal with the growing power of major retailers and customers.
Armed with this information, you can shape demand to
increase profits and improve cash flow.
Unlike dated, problem-prone, spreadsheet-based solutions,
Demand Planning helps you address issues like promotions,
collaboration, and multiple channels. Whether standalone
or as part of an integrated S&OP solution, Infor SCM Demand
Planning can help you improve forecast accuracy, and make
the most of your sales and operations plans. Did you know that
by boosting forecast accuracy 2%, you can improve inventory
accuracy by 1%? By any measure, that could help you run rings around the competition.
GETTING 20/20 VISION INTO DEMAND.
I FY O UD O N TH A V E T H ER I G H T T O O L ST O B R I N G A L L T H E R E L E V A N T F A C T O R SI N T O F O C U S Y O U C A N T S E E C L E A R L Y
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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
OK, so you’ve got your demand plan in place. Now what are you
going to do about supply? You need to figure out how cost and
supply risks will impact your profitability and cash flow. And
you need to determine which supply strategy—for instance,
low cost or highest service level—best meets your business
objectives.
When you try to synchronize supply with demand, a lot of
factors come into play. How much production capacity is
available? How much warehouse space do you need? Which
transport route should you use? Are co-packers involved?
What are your financial constraints and input costs? Is
alternative sourcing available?
Infor SCM Advanced Planner does the work for
you. It calculates trade-offs, considers constraints, and makes the best use of assets, while minimizing costs. By implementing
Advanced Planner, you can join Infor customers that have
reduced raw material costs by as much as 30%, minimized
finished goods inventory by as much as 30%, and reduced
procurement costs by up to 15%.
WALKING THE TIGHTROPE BETWEEN SUPPLY AND DEMAND.
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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
You know how you have to rinse out your glass, or get a new
glass, if you’re switching from milk to soda pop? You follow the
same principle in batch-process manufacturing when you have
to clean out a tank or set up a new one before switching from
one product to another.
Process manufacturers face different scheduling challenges
than other types of manufacturers. You need to manage the
capacity of vessels, tanks, and lines—and the flow of product
between them. Those challenges aren’t met by spreadsheets,
conventional enterprise resource planning (ERP) software, or
master production schedules.
Infor SCM Advanced Scheduler is a sophisticated,
constraint-based solution that synchronizes all operations
across all lines. When you use Advanced Scheduler, you can
decrease the amount of lost time between vat set-up and
changeovers. That means your production costs will decrease,
and your on-time delivery performance will increase.
Using Infor SCM Advanced Scheduler, you can increase throughput at your plants anywhere from 10% to 40%, and cut compliance risks at the same time.
HOW TO ENSURE YOUR SCHEDULE DOESN’T TANK.
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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
Agility is a powerful attribute. It can help you improve margins.
Reduce compliance risk. Eliminate waste. And drive efficiency.
It can also help you increase new-product introductions—and
turn product development into a competitive advantage.
But to become more agile, you need a powerful product
lifecycle management (PLM) solution.
Infor PLM takes the guesswork out of implementing a
product mix that will yield the best return from the resources
you already have. By using Infor PLM, a number of our customers have reduced time to market by 50% or more. Plus, Infor PLM lets you easily analyze your
existing product lineup so you can separate the top performers
from the slackers and focus on your best opportunities.
WE’LL HELP YOU BEND OVER BACKWARD.
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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
Major retailers like Target, Meijer, CVS, and Walgreens are now
controlling a greater percentage of your distribution channels,
and they’re asking for more services and demanding better
prices. But your company can’t profitably meet these demands
without a strong ERP system. A powerful, open-systems ERP
solution will help you run an efficient, end-to-end operation—
from sales and production all the way through packaging,
compliance, scheduling, and accounting.
Infor ERP gives you everything you need to cut costs, boost
profits, improve efficiency, meet regulatory requirements, and
increase customer satisfaction—each and every time you
process orders or touch inventory.
Using Infor ERP, you get a better grip on the true cost to serve when you participate in fulfillment activities
such as radio frequency identification and co-op advertising.
With accurate and timely access to true product costs, and
costs to serve, you can continually make strategic product and
customer product mix decisions that result in higher profits.
GETTING A GRIP ON COST TO SERVE AND COMPLIANCE.
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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
We’ve talked about the importance of SCM, PLM, and ERP
solutions to agility. But to be truly agile, you also need an
enterprise asset management (EAM) solution that monitors
and manages deployment, performance, and asset
maintenance—helping you prevent operational surprises
and uncover hidden profits. After all, if your equipment isn’t
available or reliable, there’s no way you’ll be able to deliver
perfect orders on time.
With Infor EAM, you can easily determine the moment at
which your total cost of maintaining a capital asset—such
as a pump or refrigerator—is greater than the cost to replace
the asset. Many of our customers have seen immediate savings of 6-10% in energy usage alone in their first full year using Infor EAM. But
capital assets aren’t the whole equation. Infor EAM also helps
you control inventory levels, coordinate purchasing, and
manage your maintenance workforce more efficiently
and economically.
IMPROVING YOUR OPERATIONAL BALANCE.
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THE IMPORTANCE OF GOING AGILE (or, how to land on your feet during sales and operations planning)
You’re faced with difficult challenges. You need to constantly
meet varying demands while balancing customer service levels
and inventory investments. After all, that’s the only way to
improve cash flow and profitability.
But to meet those challenges, you need clear visibility into
demand, the cost to serve, and the total cost of quality and
supply. With right-time access to accurate information, you can
continually evaluate multiple scenarios and shape demand.
Armed with optimization techniques and improved access to
information, you can make ongoing product and custom-mix
decisions. At every level of your supply chain, you can improve
profitability and cash flow while meeting service levels.
To accomplish this, you need integrated software solutions that have been designed with your needs in
mind, and are based on service-oriented architecture (SOA).
Now is the time for you to say goodbye to dated, problem-
prone, spreadsheet-based systems—and to leverage the power of Infor’s integrated, SOA-based S&OP solutions.
TURNING CARTWHEELS AROUND THE COMPETITION.
Please feel free to post this on your blog or email it to whomever you believe would benefit from reading it.
THERE IS A BETTER WAY.
At Infor, we work with a core belief. We believe in the customer. We believe that the customer is seeking a better, more collaborative
relationship with its business software provider. And a new breed of business software: created for evolution, not revolution. Software
that's simple to buy, easy to deploy, and convenient to manage. Our 70,000 customers in more than 100 countries stand with us.
We look forward to your sharing in the results of our belief. There is a better way. For additional information, visit www.infor.com.
Infor Corporate Headquarters | 13560 Morris Road | Suite 4100 | Alpharetta, Georgia 30004 | USA | Phone: +1(800) 260 2640
Copyright © 2010 Infor. All rights reserved. The word and design marks set forth herein are trademarks and/or registered trademarks of Infor and/or related affiliates and subsidiaries. All other trademarks listed herein are the property of their respective owners. www.infor.com.
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