Special technology report Planning & Forecasting


On schedule


Manufacturing & Logistics IT spoke to a number of key spokespeople within the Planning & Forecasting vendor and process management community about some of the current talking points and key developments within to this mission-critical technology space.


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n this report, we focus on many of the current main talking points within the planning & forecasting software space – an area that can cover everything from predicting demand volumes right through to planning and scheduling production capacity on the shop floor – and more besides. So without further delay, just what are the key market trends and notable technological developments that manufacturers and logistics professionals should be aware of with a view to optimising their daily operations? Malcolm Stork, managing director EMEA at Demand Solutions, reports that he is currently seeing increased interest in the area of collaborative forecasting. “Getting a demand signal from closer to the customer can significantly reduce the amplification of distortions in demand and improve forecast accuracy,” he


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commented, adding: “Combined with easy- to-use inventory optimisation tools, this


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support the process it couldn’t be easier.” However, Stork insists that the process remains king, and without a real willingness from the management team to make it work companies will continue to struggle.


Hugh Williams, managing director of Hughenden Consulting, agrees with Stork, citing one current keenly talked about area as being S&OP, in addition to demand planning (forecasting). “Demand planning is reasonably well understood, although businesses do not yet generally understand what they need to do to implement a good demand planning


Anybody can create a good schedule given enough time, but the variability in demand and frequent changes in priorities mean solutions like APS products give the planner the opportunity to change the plan more frequently and test alternatives before releasing to the shop floor.” – Mike Novels, Preactor International.


can make enormous improvements in inventory levels and mix.” According to Stork, another core area of development is Sales & Operations Planning (S&OP). “There is still major interest in this area,” he said, “and now with dedicated tools available to


IT December 2011


process,” said Williams. “There is a debate about the difference between S&OP and integrated business planning (IBP), which is serving to confuse more than clarify. IBP/S&OP, however, is where we have seen the emergence of a number of specifically


designed software solutions – and where other software houses say they have software without really understanding what this process requires. The economic circumstances of the past couple of years are still the drivers for


businesses to improve these


processes, although there is probably more awareness in the boardroom about the value than previously seen.”


In terms of current technology highlights to be aware of, Andy Latham, managing


Mike Novels


director of K3’s Business Technology Group, highlights multiple resource scheduling, which allows all required resources (such as tools, jigs, space and skills) to be planned for each job; therefore eliminating wasted time spent waiting or searching for missing items. Ideally, says Latham, each resource or group of resources would have their own availability calendar. Having real-time capable to promise commitment as sales orders are taken allows customer-facing users to offer customers a date by which delivery can be made. Latham points out that in order to arrive at a date at which goods in the required quantities can be delivered, a number of factors need to be taken into account; including availability of raw material and sub-assemblies as well as available capacity at the work centres.


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