QAD Demand Management Patrick Grace, QAD Solutions Consultant September 27th, Fall MWUG Session

2 Forecasting Goals Solution Overview -Basic Forecasting -Demand Management Demonstration Summary Agenda 2011 Fall MWUG Session

3 Comprised of Two Words -Fore -Casting Look Out Throw Out Forecasting Definition Demand Management

4 Value Chain 2011 Fall MWUG Session

5 Reduce forecast error -At SKU Level More time spent in analysis versus hunting for issues -Exception based Provide an easy, consistent method for capturing inputs to the forecast -Know accuracy by sources of input -Capture thoughts on adjustments Use the forecast and customer orders to drive planning Typical Demand Forecasting Goals 2011 Fall MWUG Session

6 Twelve to Eighteen Month Visibility More Process Automation -Takes 10 hours to compile data to get to the sales staff and Export to Excel. Ability to Handle Growth -What happens if we double our business? -Getting forecasts from new acquisitions? -What if we decide to drive MRP with forecast? It has to be easy enough for the sales force to use and provide input. Sample Requirements 2011 Fall MWUG Session

7 QAD Basic Forecasting 2011 Fall MWUG Session

8 QAD Basic Forecasting 2011 Fall MWUG Session

9 QAD Basic Forecasting 2011 Fall MWUG Session

10 QAD Basic Forecasting 2011 Fall MWUG Session

11 QAD Demand Management The Solution 2011 Fall MWUG Session

Demand Management: -Extensive statistical forecasting based on history, forecast, or other data series -Alerts to notify of exceptional circumstances -Inventory policies based on forecast variability and service level -Collaborative forecasting between suppliers and customers -Sales and Operations Planning “…actively managing demand signals to better sense demand (think of monitoring consumption instead of orders), [and] incorporating downstream data with a higher frequency of modeling (weekly or daily)” -- Source: AMR Demand Management Defined 2011 Fall MWUG Session 12

Demand Management Engine Collaborative Portal Inventory Optimization Rough-cut Planning Sales & Operations Planning QAD’s Demand-Driven Suite 2011 Fall MWUG Session 13

14 Demand Management 2011 Fall MWUG Session

Collaborative Portal QAD Other ERP SCM BI S&OP QAD’s Demand Driven Suite Informal ERP Excel SQL Access Demand Management Engine Inventory Optimization Rough Cut Fall MWUG Session

Sales & Operations Planning Demand Supply Demand Planners Sales & Marketing Category Management Product Management Supply Chain Operations Engineering Logistics Actual Results Reviewed & Analyzed Re-Forecast & Consensus Meeting Forecast Supply Consensus Forecast Demand Executive Review Resolve Issues Set Direction Determine Strategic Impact Executive Review Meeting Fall MWUG Session

Forecasting Communicating Life Cycle Management Optimizing Balancing Planning Measuring Assisting the Supply Chain Fall MWUG Session

Forecasting  Robust statistical engine  Error tracking  Allocation  EDI, POS, and on-line data  Planning bills Fall MWUG Session

Statistics, Methods & Techniques Fall MWUG Session

Daily, Weekly, Quarterly, Monthly Buckets Forecasting horizon is user defined Forecast can be shipment, order history, etc. Unlimited years of history 32 forecasting algorithms with best fit, and on screen alerts, and 26 accuracy measurements Forecast Maintenance - Demand Management Fall MWUG Session

Graphical & tabular display When insufficient history, uses variety of modeling approaches Forecast is user defined with hierarchy created. Change forecast through drag & drop, mass changes, tabular change Notes with capability Forecast Maintenance - Demand Management Fall MWUG Session

Top Down Bottom Up Middle Out Hierarchies PRODUCT CUST DIST CENTER FAMILY MARKET DEMAND-SIDE HIERARCHY PRODUCT CUST DIST CENTER PRODUCT DIST CENTER PRODUCT FAMILY SBU SUPPLY-SIDE HIERARCHY Fall MWUG Session

Integration QAD Demand Management 23

ERP DM Integration QAD Apps QAD DM Forecast ImportSales Extract Forecast ExportSales Import 24

Share information Exceptions Promotions or events Reporting Security Communicating Fall MWUG Session

Specific calculations Profiles Cloning/same as Collaborate Life Cycle Management Fall MWUG Session

Optimize: Safety Stocks Service Levels Order Points Periods of Coverage Lead Times Optimizing Fall MWUG Session

Balance Supply & Demand through key resources -Equipment -Raw Materials -Labor -Subcontracting What-if Analysis Balancing Fall MWUG Session

Link medium to long term operations -Business goals -Operational planning -Financial planning Model effect on supply capabilities and financials Planning Fall MWUG Session

Improved visibility Enhanced decision making Reporting and analysis capabilities for all levels of the enterprise. Measuring Fall MWUG Session

31 Standard Reports 2011 Fall MWUG Session

32 Comparison Excel Output 2011 Fall MWUG Session

33 Demonstration QAD Demand Management 2011 Fall MWUG Session

34 More sophisticated forecasting techniques Forecast collaboration tool Changes to forecast easily uploaded Measure Actual to Forecast accuracy -Exceptions and Filters Document reasons for forecast adjustments -At series level or individual observations Aggregate Forecasts different views -Hierarchy Manager Help with setting safety stock levels Rough Cut Capacity Planning -Planning for projected warehouse requirements Summary 2011 Fall MWUG Session

35 QAD Demand Management Thank you For Attending!! 2011 Fall MWUG Session