Special technology report Planning & Forecasting
Kevin Bull, product manager
resource shortages that can then be avoided. “All operations are planned on factual capacity information – what is truly possible with the resources available – so outsourcing can be reduced by maximising the utilisation of existing
resources,” he said. “This means that additional overhead costs such as overtime can be minimised or planned for if required. This is critical not only for current works orders but it also enables organisations to assess capacity for taking in new work.”
Increased functionality Kevin Bull, product manager at Columbus IT, points out that today's leading ERP systems have been extended to include more and more functionality to assist the business in its start-to-end cycle of planning scenarios. He explains that many ERP systems have now taken on functionality that was once the exclusive domain of specialist software systems. “From the initial sales forecast through to material planning and shop floor production sequencing, business planners are able to use a single system, with consistent tools, a single view that shows demand, supply and resource utilisation and without the risk and time delay that is presented by systems integration.”
Bull then focused on specific tools and their benefits: First, he looked at those related to demand planning. “Where goods are retail goods, it can be advantageous for the business to be able to produce forecasts from actual consumer sales information, often from retailer POS systems. One key aspect to forecasts generation tools is the ability to visualise data at many different levels. When a business has extensive product ranges it can often be difficult to ‘see the wood for the trees’, so it is important that the demand planning tools are able to sales forecast charts in many different views – by market place, region,
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MANUFACTURING &LOGISTICS
IT December 2011
product category, by time frame, etc.” Next, Bull looked at capable to promise. “When customers place a sales order they will often ask ‘When will it be with us?’ … Modern ERP systems are able to provide this information quickly and easily during the sales order entry process – the customer can be informed quickly and accurately of when they can expect their goods to be delivered.”
Better end-to-end visibility Karin Bursa, vice president of marketing at Logility, points out there are three key areas of interest that Logility is seeing at the moment; advanced demand planning techniques such as attribute-based models, inventory optimisation, and sales & operations planning. Bursa commented: “As supply chains become more complex and connect several partners from around the world, companies need better end-to-end visibility
“
multiple functions, and provide analysis in a connected way; this is particularly true of areas like S&OP and IBP,” she said.
Integrating the ERP
system with external systems – such as finite capacity planning or forecast generation tools – is only the start, as the same connectivity tools can be used to manage supply chain integration, EDI and web services etc.”
(macro and granular), improved customer service, the ability to more accurately forecast demand and a supply chain network response that meets the financial and service goals of the organisation. These are three key areas that directly impact these needs.”
Alexandria Rumble, global product marketing director at TXT, observes that there is a definite move towards better use of planning & forecasting software. She commented: “The functionality has been available for some time – in terms of attributes in planning & forecasting as well as attempts to segment product and services – but we are finding that there is a greater focus on analytics, which has triggered innovation and is also forcing traditional business intelligence (BI) platforms to rethink their strategy and develop their offer further.” Rumble is also seeing that isolated point solutions for specialised problems are not an immediate choice for buyers as they can create new islands of functionality. “Buyers are looking for innovative solutions that can connect multiple business users in
According to Rumble, the economic crisis and the need to make better decisions have definitely created a surge in demand for new capabilities. This, she believes, is outstripping the capability of BI platforms and stretching the skills and resources of BI teams. “It is true that historical reporting remains important, but requirements for predictive analytics and event processing to maintain real-time views are growing quickly,” commented Rumble. “Awareness of the need to interpret data for better decisions and improved processes has never been greater. Interpretation is best done when traditional historical reporting is augmented with real-time information and predictive analytics. To meet new
– Kevin Bull, Columbus IT.
requirements, specific analytic solutions are offered; standalone or embedded in business
applications, including those delivered via SaaS.”
Improved information flow In addition, Rumbles believes the growing use of smartphones and tablets raises questions about how to exploit the new capabilities of these devices and to deliver better information in the context of how it is being consumed. “In the case of S&OP or IBP, for example, the ability to connect company goals to plans, and being able to close any potential gaps, has become crucial,” she said. “By integrating consumer insight into demand and supply planning and consumer buying segmentation, product launches will become more successful and more targeted.”
Pieter Van Nyen, project manager at OM Partners, also highlights the integration of software functionality – such as demand forecasting & planning, advanced planning & scheduling (APS), order allocation and sales & operations planning (S&OP) – within a single
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