Managing Automation - March 2009 - (Page 39)

ceiving better aligns with the business plan,” says Andrew Kinder, Infor’s director of solutions marketing for supply chain management. CROSSING LINES Three Key Skills Underpin Demand Management E ffective demand management strategies look outside the walls of the enterprise to collabo rate with suppliers to manage downstream customer opportunities and risks. The ability to do this requires a manufacturer to become proficient in three key areas: AMR’s Barrett says there is a lot of DEMAND SENSING: The organizational capability to sense and use demand information from the overlap in the types of applications channel, removing demand latency. Demand latency is the time it takes to sense demand triggers or levers available, which can be confusing for and then translate that information into a product or plan. a company trying to choose the right Examples of how to sense demand: software to meet its needs. Perhaps ● Using point of sale data from big stores such as Lowe’s or Home Depot then, the biggest feature to consider ● Using the sales forecast and sales configuration output to understand market changes when evaluating technology is the ● Implementing assumption-based forecasting to understand the pipeline ability to collaborate across the lines Example: Toyota enters the small car and hybrid market in the United States by sensing the market shift of business in order to peg production toward more fuel-efficient vehicles. to the true demand signal, she says. Infor’s Supply Chain Management DEMAND SHAPING: Consists of processes or activities to increase what the customer wants to buy. Demand Planning products, for exActivities include: ample, include a forecasting tool, ● New products or features which is a “self-learning” statistical ● Pricing strategies engine that lets the user model and ● Channel and sales incentives test different forecast scenarios to ● Marketing programs such as trade shows analyze the options throughout the Example: Boeing orchestrates demand by deciding which orders to take on the 787. supply chain planning process. The software suite also includes a WebPROFITABLE DEMAND RESPONSE: Most companies have a demand-side view of forecasts, based collaboration tool that ensures orders, and other demand signals. Their supply networks will also have a supply-side view of manufacturthat all parties, including sales and ing, logistics, and sourcing plans. Building a supply network that can respond to demand requires an adapdemand planners, suppliers, and tive translation of these different views at the strategic, tactical, and operational levels. even customers, can increase visibil● Strategic: Unification of people and processes across demand, supply, and design networks ity into promotions, campaigns, and ● Tactical: Using sales and operations planning as the core process where cost-value trade-offs delivery of materials. can be made How does all of this translate into ● Operational: End-to-end processes, such as order-to-cash and procure-to-pay value-add for the business? Well, InExample: A truck manufacturer consolidates and centralizes all North American logistics and transfor says that a large container box portation functions across five plants and all suppliers. Results include lower transport costs, improved company has seen a 25% reduction inventory management, and better supplier relationships. in roll-stock inventory after impleSource: AMR Research Inc. menting its collaboration solution and developing a single view of demand with input from more than 15 faciliBlueprints product manages data flowing in ties and 150 or more people. from not only the supply chain and partners, Similarly, Logility’s Voyager Solutions inbut also customer relationship management cludes an automated collaborative calendar to and ERP applications. The information is optimize daily activities between partners cleansed, a process that removes inaccurate based on the software suite’s ability to foreor redundant records, and can be used in areas such as S&OP to shape demand. “People are fighting for market share, S&OP is an important customer retention, and new business, aspect of demand as it is and there is a slowdown throughout often referred to as the process behind the techthe value chain.” — IBM’s Paul Hoy nology, Infor’s Kinder cast while providing visibility into orders, says. And S&OP is quickly evolving into shipments, and inventory. “We help a comsomething called “integrated business planpany determine where to place inventor y ning,” which, although the term is not wideand how to replenish inventory to meet the ly known, is the transformational aspect of demand plan,” says Ron Burnette, product demand planning, he says. director at Logility. It’s about manipulating things to bring And in terms of gathering information revenue back in line, Kinder says. It’s not from multiple sources, IBM’s Performance just the way you sell product, but the way Photo courtesy: IBM 39 March 2009

Table of Contents Feed for the Digital Edition of Managing Automation - March 2009

Managing Automation - March 2009 Contents Take 1 Sober Outlook, Cost-Cutting Techniques Dominate at Automation Conference Sale Canceled, i2 Searches for Its Focus Accenture Unveils a Service for the Factory Floor Solar Is Bright Spot for MES Player Eyelit Other Industries Outspent Auto on Robots in 2008 Integrators to Play a Bigger Role at ILS Technology Notes Deep Dive Supply Chains Reader Poll Technology Directions Expert Q&A User Resources Special Report Transformation Product Scan Advertiser Index Next

Managing Automation - March 2009

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