Demand Management Features and Functions
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Promotion Planning
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Pricing and Profit Optimization
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Forecasting
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Merchandise Planning
Merchandise planning analyzes demand at an item level. It allows organizations like merchants (retailers) to understand demand based on issues like demographics, store locations, shelves, and support to purchasing as well as the positioning of merchandise in the retail channel.
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Life Cycle Planning
Life cycle planning is becoming a more popular capability. Demand characteristics change over the life of a product and require close attention to demand patterns to ensure that markets are not starved during ramp-up nor supplied with excess in later stages. In addition, firms are frequently left with excess inventory during engineer change orders (ECOs) or other product changes as well as end-of-life, due to poor planning and visibility to demand cycles and communication of product phase-outs. Life cycle planning provides the ability to view sell-in and sell-through point of sale (POS) data and will recommend alternate curves based on early actual sales information.
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Consensus Planning
Consensus planning is a method to create a "one number" forecast for the enterprise. Within complex organizational structures, many professionals are responsible for planning in different areas, such as product marketing for product and product families; sales for territory sales plans; channel and alliance management for channel forecasts; finance for revenue and corporate strategic plans; and manufacturing for shipment or off-the-dock plans. The wide range of professionals involved often creates confusion, poor coordination, and missed business opportunities when sales are missed or excess inventories mount. Ultimately, a process must produce a forecast, one number, upon which the supply chain will act.
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Collaborative Planning
Collaboration among trading partners has become standard practice in many industries as more supply chain activities are being outsourced. Within the demand management module, collaborative forecasting must comply with process and data standards that have been validated by the VICS Council, RosettaNet, and other industry bodies that have modeled these processes for their industries. In addition, a collaborative software system must allow the ability for joint sharing and modeling of demand supply gaps between trading partners. It must allow trading partners to view, drive alternative solutions and simulations, and resolve issues around price and unit availability, which include flexibility and target replenishment levels (re-order points).
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S&OP
Sales and operation planning (S&OP) is a process that employs enabling technology to balance demand and supply to create a feasible forecast that meets an enterprise's global organizational needs. Cross-functional organizations from marketing to manufacturing require visibility, simulation, and consensus building for meeting revenue, cost, and delivery needs. The ability to reallocate and reprioritize based on customer, profit, and other factors are important elements of S&OP today. It is important to determine whether the vendor supports the S&OP process with information from multiple systems. S&OP processes also ask questions around investment to improve responsiveness, customer service, reduce risk, and increase market share. Integration is important because the data to answer these questions may reside in other modules such as APS or inventory planning.
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VMI Replenishment
Vendor managed inventory (VMI) replenishment allows the co-management of inventory by both customers as well as the supplier. Best practices allow for joint creation and analysis of the current level of inventory to support demand and keep cost down. In addition, dynamically VMI detects when inventory levels fall bellow required (agreed-to) levels and place a refill (replenishment) order.
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Event Planning
Event planning for various marketing events became more complex as firms started using a rich set of trading partners, which include media, channel partners, and retailers. Product launches, special media and advertising, promotional events, or new store openings need fine planning to be successful. Today, systems must move from PowerPoint to strong profit analytics for ensuring market success and return-on-investment.
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Metrics and Reporting
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Demand Management Systems Architecture
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Planning and Demand Forecasting Features and Functions
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