integrated supply & demand planning 2014

Integrated Supply & Demand PlanningJorge H. Chavez©

IDEUM GROUP HEADQUARTERS

1507 53rd 480 Chicago, IL 60615

USA

+1(312) 324 0367

Integrated Supply and Demand

Planning

Jorge H. ChavezCo-founder

Business Development Director

jorge.chavez@ideumgroup.com

IDEUM S.A. CHILE

Hernando de Aguirre 162 # 502

Santiago, CHILE

+562-22337559 +569-93358867

Integrated Supply & Demand Planning

Agenda

• Why do you need a Supply Chain Planning Solution?

• Functional Structure & Management by Average

• Scattergram™ Methodology for Segmentation

• Hierarchical Relationship of Performance Measure

• Underlying Methodology in the Forecast Models

• Basic Assumptions in the Traditional Inventory

Models

• “Why our solution is different,” demo presentation of

RASTPro™

2Jorge H. Chavez©

Integrated Supply & Demand Planning3

IMPORT /

EXPORT

FORECASTING

PLANNING TOOL

MRP

REPLENISHMENT

ORDERS

WMS

DATA

CLEANING

DATA

CALCULATION

Integrated Supply & Demand Planning4Jorge H. Chavez©

Functional Organization (Silos)

PRODUCTION

FINANCE

SALES

MARKETINGPROCUREMENT DISTRIBUTION

SUPPLY CHAIN MANAGEMENT

Jorge H. Chavez.© Supply & Demand Planning5

Typical problems we have found in most companies

Too much data / poor information

Large investment in hardware / software apps

High error in forecast

Too many KPI

Excess inventory

Poor fill-rate & imperfect order delivery

Decrease of profitability

High turnover of clients / consumers

Management by average

Too many coordination meetings

Integrated Supply & Demand Planning6Jorge H. Chavez©

Most metrics are Hierarchical

Forecast

Accuracy

Fill Rate OTIF Perfect Order

Total

Inventory

Non-Working

Inventory

Inventory

Turns

Supplier

Quality

Supplier Delivery

Service

Operational Logistic

Costs

Order Cycle Time

Cash to Cash

Supply Chain Total Cost

WAPA = ( 1- MAPE)

UNITS

Jorge H. Chavez© Integrated Supply & Demand Planning7

BASIC

COMPLEMENTARY

HIGH RISK

INTERMITTENT

Scattergram©

SALES (USD)

Jorge H. Chavez© Integrated Supply & Demand Planning8

BASIC

COMPLEMENTARY

HIGH RISK

INTERMITTENT

Scattergram©

MARGIN (USD)

Jorge H. Chavez© Integrated Supply & Demand Planning9

BASIC

COMPLEMENTARY

HIGH RISK

INTERMITTENT

Scattergram©

Integrated Supply & Demand Planning10Jorge H. Chavez©

Customer´s Scattergram©

??’\?\

PREMIUMLOYAL

OCCASIONAL TO EVALUATE

Integrated Supply & Demand Planning

Statistical Demand Forecast (Time Series) is

only one input for Demand & Supply planning.

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Inventory Management

Integrated Supply & Demand Planning

Intermittent High Risk

Complementary Basic

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Example for Differentiated Fill-rate

99,9%99,5%

98,5% 98,5%97%

98%

95%

96%

93%

94%

85%75%

65% 70%

ELIMINATE ?

CHECK

CUSTOMER ?

?

IV

Demand

Integrated Supply & Demand Planning

• The assumption of normality of demand is incorrect in the

majority of cases.

• The assumption of normality for the delivery times is

seldom met.

• Why do many models in the market place make these

assumptions?

Empirical research shows that demand and delivery time are

better modeled as gamma functions.

13Jorge H. Chavez©

Normal Distribution Assumption

Integrated Supply & Demand Planning

• Replacing the EOQ by the dynamic “quantity order”

• Demand & supply density functions are Gamma.

• For intermittent demand, Ideum Group has developed

proprietary models which we are improving continuously.

• For basic and complementary products, we detect the best

fit model for each SKU and complement the forecast with

ones from sales & marketing in a collaborative model to

avoid bias in the forecast.

14Jorge H. Chavez©

Main features of RASTPro™

Integrated Supply & Demand Planning15Jorge H. Chavez©

Security Overview

We take security very seriously and have developed a

comprehensive set of practices, technologies, and policies to help ensure

your data is secure.

Our Security practices are grouped into four different areas:

Physical Security

Internet Security

Enterprise Security

Business Continuity

Integrated Supply & Demand Planning16Jorge H. Chavez©

Physical Security

Our datacenters are hosted in some of the most secure

facilities available today:

24x7x365 security

Video monitoring

Controlled entrance

Undisclosed locations

Integrated Supply & Demand Planning17Jorge H. Chavez©

Internet Security

128-256-bit SSL

Next Generation Firewall

Geo IP Filtering

IDS/IPS

Control & Audit

Virus Scanning

Integrated Supply & Demand Planning18Jorge H. Chavez©

Enterprise APP Security

Strong usernames and passwords

Least-privileged user account

Permissions

Policies

Control & audit

Virus protection

Service packs & hot-fixes

Built-in RastPro security

Database security

Integrated Supply & Demand Planning19Jorge H. Chavez©

Redundancy

Power redundancy

Fire prevention

Data protection & back-ups

Redundant cooling & temperature

Integrated Supply & Demand Planning20Jorge H. Chavez©

RastPro™ Solutions

Rastpro™

Rastpro™ Manufacturing (MRP)

Raspro™ Retail

Raspro™ Advance Floor Planning (AFP)

Integrated Supply & Demand Planning21Jorge H. Chavez©

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