Effective supply chain management demands both efficiency and precision. At Valtitude, we combine SAP Integrated Business Planning (IBP) with a sophisticated segmentation algorithm to classify products and the product-customer matrix. This structured approach enhances both demand modeling and inventory strategies, helping our clients meet market demands while optimizing resources.
Strategic Segmentation for Better Planning
Our proprietary algorithm segments products and product-customer combinations into strategic clusters. This process goes well beyond traditional ABC analysis.
We examine dimensions, including demand volatility, revenue contribution, order frequency, and product lifecycle stage. By doing so, we uncover patterns and group items with similar characteristics, allowing for truly customized planning.
For example, products with steady, high-volume demand are grouped separately from those with sporadic or seasonal demand patterns. These distinctions inform specific forecasting approaches and inventory targets, ensuring ensuring every segment is managed with the most reliable techniques and policies.
An outline of the morning session at the seminar:
2. All you need to know about forecasts, you needto start from the Data Garden. Understand yourdata and make appropriate adjustments before beginningthe forecast process.
• Data Analysis for forecasting
• Data Requirements for Demand Planning
• Graphical review of the Data• Central Tendency and measures ofDispersion• Outliers and Missing Data
• Structural Changes and Data Shifts
3. Measure to mature! You cannot improve the process unless you measure where it is right now. Design and deploy the right set of demand Metrics.
• Importance of measuring forecast performance• Management Reporting and Continuous Improvement
• Forecast Bias and Sku Mix Error (SME).
You can find more info at
http://demandplanning.net/demand_planning_oneday_nj.htm.
Perhaps this will be an opportunity for us to connect and share the best practices in planning!
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