integrated supply & demand planning 2014
DESCRIPTION
Overview of Ideum Group solution methodology for supply-chain management and planning. Identify key point in current implementation and how RastPro - Ideum group flagship product - address those points. www.ideumgroup.comTRANSCRIPT
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
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.
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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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