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Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers & Distributors Trends in Demand Planning Florida West Coast Chapter January 8, 2013
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Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

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Page 1: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Denise D. Gillespie, CPIM, CIRM, CSCP

Supply Chain Solutions for Manufacturers & Distributors

Trends in Demand Planning

Florida West Coast Chapter

January 8, 2013

Page 2: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 2

Let’s talk!!!!

• Trends• Best Practices• Changing Organizations & Opportunities

Page 3: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 3

Trends

• Short or long-term• Groups or individual items• Increased focus on Qualitative factors

Break previous forecasting rules

Page 4: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 4

More Trends

• Demand sensing“…is the translation of downstream data with minimal latency to understand what is being sold, who is buying the product, and the impact of demand‐shaping programs. These three demand elements are then translated into requirements to craft a profitable demand response through internal processes for demand translation.” 

AMR Research Definition

In other words: Rapid response in supply based on real‐time actual customer demand

Page 5: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 5

More Trends

• Monthly to weekly

• More granularity– SKUs, Customers, DCs

Before:1000 x 10 = 10,000 data points

Now:1000 x 10 x 10 = 100,000 data points

Page 6: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 6

And More Trends

• More Centralized Planning• Use of More Predictive Models

Page 7: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 7

Predictive Analytics

Supply Chain Digest – Sept 20, 2012

Page 8: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 8

Best Practices

• Measurement• Focus on the A’s & B’s• “Decomposing” demand• Deploy Executive S&OP

Page 9: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 9

Best Practices

• Using Technologies– APS and master data management

integrations– Mobile devices for immediate demand

replenishment– Demand-visibility systems

• Business Intelligence (BI)

Page 10: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 10

Best Practices

• Implementing Demand Management– Not forecasting (event)– It is a business process– Demand Planning is only a part of it– Create demand, not just predict it– Sales & Marketing leads the way

Page 11: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 11

Changes

• Demand Management is evolving

Additional demand knowledge

Begin S&OP

Statistical forecasts

Executive S&OP

SC Collaboration

Time

Stage

Demand Management

CPFR

Page 12: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 12

Changing Organizations

• Organizational structures are changing

• Higher level of skills required– Depends on the role

Page 13: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 13

HOT Career Field

• JOBS!

• New opportunities

• Higher salaries

Page 14: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 14

Did you record all that?

• Trends in Demand Planning• Best Practices• Changing Organizations & Opportunities

Page 15: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 15

Where To Go To Learn More

• Institute of Business Forecasting– IBF.org

• Supply Chain Digest– supplychaindigest.com

• Institute of Supply Chain Management– ISM.org

• APICS CPIM courseware

Page 16: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 16

More Information

Contact me

Denise D. Gillespie, CPIM, CIRM, CSCP

The Denmark Group, Inc.Email: [email protected]

Phone: 407-339-2363

www.thedenmarkgroup.com

Page 17: Trends in Demand Planning - Florida West Coast Chapterapicstampabay.org/images/Trends_in_Demand_Planning... · Denise D. Gillespie, CPIM, CIRM, CSCP Supply Chain Solutions for Manufacturers

Slide 17

Thank You!!