Integrated Business Planning Demand and supply analysis to simulate the impact of volatility and support risk-optimized planning of finance, sales, marketing and supply chain Gianni Giacomelli Senior Vice President, Genpact Gaurav Agrawal Assistant Vice President, Genpact
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Integrated Business PlanningDemand and supply analysis to simulate the impact of volatility and support risk-optimized planning of finance, sales, marketing and supply chain
• E.g. sales provides conservative sales and promotional uplift forecast, over-target performance is rewarded regardless of incremental costs and difficulties in supply-chain
Silo-based planning processes
• Functional planning exists almost as a discrete activity; integration, if any, is only an afterthought
• More iterations in forecasts; almost guaranteed sub-optimal outcome at overall level
Inadequate data and systems
• Lack of data readiness increases workload significantly
• Extended time to iterate and coordinate different perspectives makes S&OP less agile; quality of analysis likely to be compromised due to time pressures
Non-transparent financial reporting
Geographical complexities, intra-company trading, FOREX adjustments etc. often obfuscate relative performance measurement, impairing effective IBP
• Category, brand, and SKU level revenue scenarios by geography and/or channels leveraging historical and projected data on volume, price, promotion, and other marketing spend sensitivities
• Tactical competitive moves can be modeled on need basis depending on data availability
Demand and inventory forecasting
• Aggregated and stratified forecast modeling at product/category/PPG level for fast-moving, slow-moving, non-moving items
• Advanced algorithms factoring demand volatility, qualitative market inputs, industry nuances for improved forecast accuracy
Pricing and trade promotion scenarios
• Analyses of historical volume, region, price, and promotional spend and mix data to discover associations; understanding profitability profile of demand
• Scenarios for projected volumes at different levels and mix of promotion/pricing combination
Prioritization for “at-risk” products; profit maximization decisions
• Prioritization of ‘at-risk’ products/SKUs based on relative scales of ‘value at risk’ and ‘impact on profit pool’ and client inputs
• Refining marketing decisions for prioritized ‘at-risk’ product/SKU categories to maximize profits
Analytics support to individual S&OP module probabilistic scenarios
• Implications of scenarios at module/functional levels
• Building hypothesis on ‘optimal consensus zones/ranges’ for key metrics. E.g. what are the ranges of inventory levels, service-level, manufacturing capacity utilization, etc. – for maximum profit
Scenario based category/SKU level profit projections
Industrialized analytics can provide help to prepare for, conduct, and execute the IBP process
Preparing for IBP sessions
• Collect and analyze scenario results
• Analytics support to upstream preliminary S&OP activities such as demand planning and supply planning
• Develop agenda with the IBP owner informed by overall analyses (e.g. crucial conflicting/diverging metrics), and distribute plans to functional stakeholders
Genpact Limited (NYSE: G) is a global leader in transforming and running business processes and operations, including those that are complex and industry-specific. Our mission is to help clients become more competitive by making their enterprises more intelligent through becoming more adaptive, innovative, globally effective and connected to their own clients.
Genpact stands for Generating Impact – visible in tighter cost management as well as better management of risk, regulations and growth for hundreds of long-term clients including more than 100 of the Fortune Global 500. Our approach is distinctive – we offer an unbiased, agile combination of smarter processes, crystallized in our Smart Enterprise Processes (SEPSM) proprietary framework, along with analytics and technology, which limits upfront investments and enhances future adaptability.
We have global critical mass – 62,000+ employees in 24 countries with key management and corporate offices in New York City – while remaining flexible and collaborative, and a management team that drives client partnerships personally.
Our history is unique – behind our single-minded passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 15 years.
For more information, visit www.genpact.com. Follow Genpact on Twitter, Facebook, and LinkedIn.