1. Forecast error and planning horizons+
Time -

2. Customer’s order cycle
The lead-time gap
Procurement
Manufacturing
Delivery
Logistics lead time
Customer’s order cycle
Order fulfillment
Lead-time gap

3. Closing the lead-time gap
Logistics lead time
Customer’s order cycle

4. Demand penetration points and strategic inventory
Driven by Demand
Driven by Forecast

5. The information iceberg
Order
Cycle Time
The Order
Actual Usage / Demand

6. D C I DP The supply chain fulcrum (a) Key D : Demand
DP: Decision Point
C : Capacity
I : Inventory

7. D C I DP The supply chain fulcrum (b)
Visibility and Velocity enable the fulcrum to be placed nearer
to Demand in order to reduce the need for inventory and/or
capacity.

8. The supply chain fulcrum (c)D C I DP

9. Visibility and velocity drive responsiveness
Postponement
Bottleneck
Management
Reduce non-
value adding
time
Simplification
Streamlined
processes
Reduce
batch sizes
Velocity
in-bound
lead-times
Synchronous
Supply
Strategic
Sourcing
Visibility
Internal
Integration
Close to
customers
suppliers
Collaborative
Planning
Event
Shared
Information
Process
Access to
real demand

10. The sales and operations planning process
Generate aggregate demand forecast
Modify forecast with demand intelligence
Create a consensus forecast
Create ‘rough cut’ capacity plan
Execute at individual item (SKU)
level against demand
Measure performance

11. The focus of demand management and planning
Logistics and operations
Sales and marketing
Demand fulfillment
Demand creation
Demand fulfillment
Demand creation
Demand management
and planning
Alignment of demand creation and fulfillment processes
across functional and organisational boundaries

12. VICS-ECR nine-step CPFR model1
Develop collaboration
agreement
Retailer
Supplier 2
Proposal
Create joint
business plan
Proposal 3
Campaign/seasonal
attributes
Identify sales
forecast exception
Campaign/seasonal
attributes 4
POS
Create sales forecast 5
Exception items
Resolve/collaborative on
sales forecast exception
Exception items 6
POS
Create grocery store
sales forecast 7
Create grocery store
sales forecast 8 9
Central
Order
Supplier
Delivery