Supply Chain Planning Newsletter

February, 2014

Lead Article:
Merging Business Minds and Math - Making more of Statistical Forecasts

The statistical forecast is a very dry area that many clients run in a traditional way.  Typically statistical forecasts, run in batches, and are in the realm of the Demand Planning Analyst while business owners do not get involved with the output or the logic.  Our clients are breaking out of this paradigm and involving business unit managers, and marketing, in order to understand the trends in the statistical forecasts.  Operations people are working collaboratively with the Forecast analysts who are using the capabilities in Adexa's Demand Planner's Dynamic Forecasting to shape the statistical projections of the business.  

 

The capabilities of Dynamic Forecasting in Adexa's Collaborative Demand Planner (CDP) enable a business unit to gain greater insight into what is driving the business and what are the trends going out into the future.  Here is a key example.  The following screenshot shows a forecast using an expert selection statistical algorithm run in batch.  Clients are moving away from this paradigm, to one that is more interactive with the business for fine tuning how statistical forecasts are run.   The Dynamic Forecasting interface in CDP makes it easy to translate a discussion on the historical shipments into the key parameters driving the forecasts for the highlighted product and similar products.  The result is a repeatable forecast which has incorporated the input from the stakeholders.  The new insight will drive better data and increased forecast accuracy for a whole line of business.  The result is greater forecast accuracy that translates into lower inventory and availability of the right products. 

 


Attribute Based Planning (ABP)
 

Many of you have heard about ABP, but do you know why it is not just useful but critical to your business as well as implementation of your supply chain planning system? Many vendors claim that they offer attributes. However their claim is no more than simply a field in the database that can be viewed in reports. What is critical is the use of attributes as constraints in producing the plan. Attributes come in all forms and shapes. Product attributes are, for example: its color, lead content, where it was made, perishability, speed, temperature range, grading, texture and so on. Some customer-related attributes are, High Priority, Late Penalties, Tier and service level, and Region. Similarly supplier and resource attributes are Price, Distance, Delivery record, Quality, Green Compliance, max/min quantity per period, Capacity, Precision Degree, Speed of Production, Skill of resources, cost and so on. Attribute-based Planning takes into account virtually an unlimited number of constraints or attributes as specified by the users and forms constraints in order to deliver the right product at the right time to the right place. This way they can avoid delivering goods with lead content from a "sweat shop" with undesired quality to a major retailer! You can read a lot more or refer to a White paper on this topic at www.adexa.com.

 


Tech Corner

If you have not checked out our lateswarehouse_assembly_workers.jpgt product: MEIO, Multi Echelon Inventory Optimizer, then you should read all about it at our web site. It is already in use in some of the most dynamic companies to adjust the inventory levels across every level of their supply chain. MEIO uses advanced integer programming and statistical queuing theory in order to determine just the right level of inventory at every point in the supply chain in order to deliver a desired level of service at lowest cost. The system has the capability to show the change in cost as you desire lower or higher service levels for different products. Read the related white paper about this new innovation at www.adexa.com . You may also get a demo and a test version of this product on a temporary basis. Some of our prototypes have shown immediate reduction of up to $30M in inventory by changing the mix of what is kept and where it is kept. Try it, what do you have to lose other than excess inventory? Send us an email at info@adexa.com for further information or arrange for a demo.

Adexa Trivia (Special Superbowl Edition)

Adexa will make sure that your chicken wings are ready. 

   

If I were a chicken, I would want to be planned by Adexa. Kill no chicken before its time, is our motto! Reducing the inventory (dead frozen chickens) and making sure deliveries are made on time in the largest chicken processing plant in South Africa is what we do. Bon App�tit!

  

 Adexa made sure that your ketchup comes in a bottle.

  

It would be a shame if your ketchup and mustard were delivered in a paper cup! Well, as long as there is Adexa, there is a quality container planned just for you! Have no fear eat your fries with all the condiments that you want. Leave the container planning to us.

  

Adexa ensures delivery of your latest cool HD TV screen just in time for the BIG game!

 

Watching the electronic circuit boards behind the glass panel is not that much fun. Adexa ensures on-time delivery of the screens, for one of the biggest Asian manufacturers of HD TV, so that you can watch that BIG game as sharp as it can get.

 

With your chicken wings, ketchup and HD TV, may we say Adexa has already planned your Superbowl party! Enjoy!  


For more information contact us at any time:

Ron Wilson

Marketing Director

888-300-7692 (Ext. 3)

rwilson@adexa.com