| is an important value-added activity in the corporate value
chain. While it is inevitable for any organization, certain key planning
methodologies enable an organization achieve a competitive advantage.
1. Business Planning is the annual
exercise of generating the Budget for the upcoming year that includes
the volume, cost and profit plan for the company. The process may
also incorporate developing a long-term forecast.  Learn
more.
2. Promotional Planning. Develop the
promotional plan, model the volume impact (or lift), evaluate the
ROI and incorporate the plan into the sku-level supply chain forecast.
Learn
more.
3. Collaborative Planning is the process
of planning, forecasting and replenishing to customer supply chain
needs in a collaborative relationship between the supplier and
the customer. Learn
more.
4. VMI & CMI. Vendor Managed Inventory
is the process of managing the customer inventory, replenish their
stores and warehouses so optimal inventory is kept in the customer
supply chain. The objective is to minimize stock-outs and costly
production stoppages. The Co-managed Inventory Process is similar
but more popular in the Manufacturer to Retailer model. Learn
more.
5. Account Based Forecasting integrates
the customer-specific collaborative plan into the national forecast
and delivers an accurate sku-level plan to production. The customer
break-down in the forecast can be leveraged to optimize inventories
and service levels. Learn
more.
6. S&OP. Sales and Operations
Planning process helps the entire company to develop, understand
and use a consensus forecast for operational Planning and enable
a forum for understanding operational constraints and resolution
to arrive at the agreed-upon operational Plan. Learn
more.
VMI, CMI, CPFR and ABF are the different
methodologies available for the manufacturer to collaborate with
the customer. Which method to choose depends on the customer, the
data availability, systems infrastructure as well as the information
needs of the collaboration process. These processes may be mapped
out in a continuum of increasing complexity and benefits.
We help you optimize over these considerations and help you chose
the right model of collaborative relationship. For more details,
please
contact us.
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