Download - CSCMP 2014: Visibility Powered Planning

Visibility Powered PlanningThomas Kozenski, VP Solution Strategy

Fabrizio Brasca, VP Solution Strategy

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Visibility Powered Planning

Dynamic Fulfillment

The Visibility Funnel

Iterative Planning

Constraint Visibility

Industry Pressures


Unprecedented Industry Pressure

INDUSTRY

PRESSURESTHE VISIBILITY

FUNNEL

DYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING


15

8IN

VE

NT

OR

Y T

UR

NS

Leaders Average

96%

89%

OT

IF D

EL

IVE

RIE

SLeaders Average

16%

12%

EB

ITD

A

Leaders Average

70%Companies that run an optimized

supply chain achieve…

higher performance & operational effectivenessSource: PwC Global Supply Chain Survey 2013

Supply Chain as a Strategic Weapon

INDUSTRY


FUNNEL

DYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING


Series10% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Major customers share POS data

Major customers share demand forecasts

We gather data to understand overall market demand

Major customers share inventory

Major customers share inventory

We gather data to understand overall market supply

Major customers share promo plans

Major suppliers share order lead time/delivery data

Suppliers share advanced shipment notices

Systems/partners provide finished good status

Leaders have greater total visibility across many dimensions…

1 1.2 1.4 1.6 1.8 2 2.2 2.4 2.6

Manufacturers

Wholesalers

Retailers

Retailers and Wholesalers

Vertically Integrated

…as well as superior visibility to both downstream and

upstream information

Source: Supply Chain Management Review 2013

Nu

mb

er o

f V

isib

ilit

y D

ime

nsi

on

s P

rese

nt

Upstream

Downstream

Visibility is Vital

INDUSTRY


FUNNEL

DYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING


In Response to Disruptions, Supply Chain Leaders: • Are able to quickly change products, processes and organizations

• Leverage this flexibility to lower inventory, improve customer service and respond quickly

Series1

2.5 2.7 2.9 3.1 3.3 3.5 3.7 3.9 4.1

Low Visibility,Low Flexibility

Low Visibility,High Flexibility

High Visibility,Low Flexibility

High Visibility,High Flexibility

Pro

fita

bili

ty In

dex

Data strongly indicates the combination of visibility

and flexibility enables the greatest profitability

Source: Supply Chain Management Review 2013

Response with Intelligence

INDUSTRY


FUNNEL

DYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING


Networks are Siloed

INDUSTRY


FUNNEL

DYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING



INDUSTRY

PRESSURES

THE VISIBILITY

FUNNELDYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING

Retail

Distributors

Enterprise

Direct Consumer

Owned Factories

ODM/EMS Factories

Your Enterprise

Suppliers

Suppliers

Multi-ChannelMulti-ProductMulti-Supply

Your CustomersYour Suppliers


Retail

Distributors

Enterprise

Direct Consumer

Owned Factories

ODM/EMS Factories

Your Enterprise

Suppliers

Suppliers




INDUSTRY

PRESSURES

THE VISIBILITY

FUNNELDYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING

Growing demandvariability

Lack of internaland external

alignment

Rising supply chain risks

Escalatingcustomer

expectations

Rapid growth of new

products

Increasing cost and complexity


Retail

Distributors

Enterprise

Direct Consumer

Owned Factories

ODM/EMS Factories

Your Enterprise

Suppliers

Suppliers




INDUSTRY

PRESSURES

THE VISIBILITY

FUNNELDYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING

DEMAND AND INVENTORY

NETWORK CONSTRAINTS


Multiple Levels of Demand

INDUSTRY

PRESSURES

THE VISIBILITY

FUNNELDYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING

Harness best statistical level

Include intelligence across levels

Mid Levels:• Trending• Some

seasonality

Higher Levels:• Clear

seasonality

Lowest Level:• Rate of

sale


INDUSTRY

PRESSURES

THE VISIBILITY

FUNNEL

DYNAMIC

FULFILLMENTCONSTRAINT

VISIBILITY

ITERATIVE

PLANNING

DC to Store shipments

Vendor to DC shipments

Time-Phased Projections

Consumer Demand

Dynamic Fulfillment


Profitable Promising

INDUSTRY

PRESSURES

THE VISIBILITY

FUNNEL

DYNAMIC

FULFILLMENTCONSTRAINT

VISIBILITY

ITERATIVE

PLANNING

13

$25

Identify lanes that can ship any of the items at the

requested level of service

Evaluate potential profit on each lane

Check for item availability on each lane to maximize profit and meet timeliness goals

$30

$28$32

Customer places an order for some home

decorating items


Constraint Visibility

INDUSTRY

PRESSURES

THE VISIBILITY

FUNNEL

DYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITYITERATIVE

PLANNING

Replenishment

Transportation

Warehouse

• Time-phased replenishment plans

• Labor availability• Cost impacts

• Carrier capacity• Asset availability• Inventory policies• Time horizons

• Item dimensions• Dock labor profiles• Pallet constraints

• Trailer pools• Dock capacity• Carton configuration


Iterative Planning

INDUSTRY

PRESSURES

THE VISIBILITY

FUNNEL

DYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING

With Iterative Re-Planning

Baseline – No Iterative Re-Planning

Optimization 1 (New Orders)

Time Closer to Execution

Cost

SavingsPotential






Iterative Planning

INDUSTRY

PRESSURES

THE VISIBILITY

FUNNEL

DYNAMIC

FULFILLMENT

CONSTRAINT

VISIBILITY

ITERATIVE

PLANNING

Is there a better way?Based upon new business conditions,

Open

Picked

Packed

Locked

Change Threshold – “too expensive to change”

Free to be entirely re-planned

Incrementally add stops

Incrementally add stops to the end only

Backhauls and continuous moves only


Upstream & Downstream Visibility Pays Off

Inventory, performance, lead time and financial

advancement

Visibility Powered PlanningThomas Kozenski, VP Solution Strategy

Fabrizio Brasca, VP Solution Strategy

Download - CSCMP 2014: Visibility Powered Planning

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