Sales procedures in operational plan for Support

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sales inventory and operations planning it is a kind of a bumper sticker single environment for synchronizing the demand the inventory and the supply plan or the operations plan and as I go through the summary today the overview you'll see that a focus of of our platform is not around just synchronizing and exception management between the demand inventory and the supply plants but it's also having a having constant transparency on the financial implications of decisions so everything we do every every scenario we do as far as the forecast as we change average sales price what does that impact on projected revenue when it comes to inventory and I look at maintaining various customer service levels at ninety five verse and ninety eight person I nine percent customer service level what does that mean as far as as far as increasing fixed assets and and carrying costs and as well as the operations planning as I look to source demands as I look to determine if I'm going to manufacture through overtime or work with a contract manufacturer if I look to see if changing over a resource or a manufacturing resource if it's a change over time and cost warrants the ability to satisfy more demand so I hope something that resonates through the through each of these planning components of sales inventory and operations planning is this the seamless view to the to the financial implications when we look at the kind of these areas this pyramid of Sales inventory operations and then at the top there planning and kind of that's Katz that's kind of the the uber level that allows the exception management and the division across the different planning areas in the sales area so this is coming up with the forecast that common challenges is how do we take a distributed ad we take the others analytics and a statistical forecast but then how do we integrate and capture input from a distributed group stakeholders across sales across marketing across finance how do we not only collect all of those inputs but to enable some kind of of accountability and that yeah ever we're getting we're getting these these forecast each month is is sales constantly reserving too much just to make sure there's enough earmarked for their customer are they continually forecasting too high who is the most accurate source because then when it comes time to determining the consensus forecast who should have the highest weight on the on the operational forecast around the inventory planning it's you know just in case actual demand exceeds the forecast how much extra inventory do we do we want to maintain and as we do so how do we how do we identify where we're gold plating or carrying too much inventory versus where we're we're under indexing and we have a high likelihood of of losing revenue because of insufficient inventory levels and as I mentioned before how do we review the the financial implications associated with with different inventory policies being it by by holding a six week Ford coverage versus a three week Ford coverage or doing a more statistical based inventory maintaining a 99% customer service level versus a 97% customer service level in the operations area the objective obviously is to hit those that that the demand as well as the inventory targets so how do we hit those high service levels while maintaining you know a vigilant eye on the the financial and profit implement implications and the corporate goals how do we what is the optimal use of all of our resources when is it appropriate to reach out to to contract manufacturing or distribution or to rent additional distribution center space so all of all of these implications will be covered in the operations plan as far as the the optimal financial way in order to satisfy the the forecasted demand and the inventory targets so I think think that's probably enough overview of the hope of the platform again the sails focusing heavily on how do we capture all of the the forecast from the field the inventory how do we set targets just in case actual demand exceeds the original forecasts we have the operations and how are we going to satisfy and source those forecasts and then ultimately the planning on top and I think top the top is probably the best way to start with with Sales inventory operations planning this is not Sales inventory operations planning it's not around detailed scheduling and work orders it's not around individual orders it's around at a bucketed level let me reconcile the sales or the unconstrained and the operations the constrained side of the business so as I'm doing that what are the typical challenges and you know identifying these discrepancies between the the sales and operation sides of the business being able to you know not only communicate with all stakeholders but yes the platform is the vehicle to capture input from all of the stakeholders but then after we have that input on an exception management how can we how can we use that how can we repurpose that into into accurate information that we should use to drive operations and so that'll be a heavy focus as we go through the planning process then into the software this is representative of you know at the planning level what would the interface look like what are the type of metrics that are being monitored so we can see here at the top a PSI production sales an inventory view very common view that's used at this aggregate sales that the aggregate planning level on top of si NOP where we can look for a product family or look for a specific location and immediately see the the the projected end ending inventory versus what our safety stock target is so this is a very effective one as far as identifying discrepancies or variances between or where we're going to be or we're going to be under indexing as far as hitting our our safety stock levels forecast accuracy again you know I think a key part of Sales and Operations planning as as it does get more and more collaborative and as as far as including more stakeholders I think a key word that we focus on is accountability so it's not just getting this information but let's have the controls in place to to audit and evaluate the efficacy of these inputs and to and to help us use that as far as how we weight the different inputs ongoing so forecast accuracy would be another common type of aggregate metric where we're looking at what were the actual sales versus the forecast over to the right we have a gauge looking at it on a quarterly basis so perhaps not on a maybe on a monthly basis it's too granular but rather let's look quarter by quarter how well we're forecasting and then the the financial implications is one as I said as a major focus for us so continually based on the current forecast what is the projected revenue down at the bottom of the screen here we see a blue for a projected revenue going out into the four different sales regions and in the orange being what is the corporate target what was communicated to Wall Street what were what based on the annual sales planning meeting what were the targets by region so this would be a common comparison that you'd want to do is always monitoring the projected revenue versus the the corporate objectives that were set be it by product family or perhaps by region such as the case here and then in the lower right and I apologize if the Texas is maybe covered up it says plant utilization and there's a is a gauge and so this is an operation side so let me go plant by plant and let me see how effectively are we using the capacity we can see with plant three it's pretty poor performance and that we're not we're not ringing the value out of our asset the fixed assets because we're only fitting a forty five percent utilization whereas at some of the other plants for example point five it's hitting a perfect 100 percent so I showed this the envy act obviously the actual metrics and the the actual the end structure of this dashboard so a DEXA we provide a series of templates for how these dashboards are set and the metrics that are involved obviously there's fine tuning based on the specifics of the implementation but it just gives you a feel for this this planning layer on top of the sales the inventory operations planning what are the what does that experience light and what are the type of metrics that are used for that portion of the of the sales in between operations planning process you