Abstract
Steve Allanson is an experienced Supply Chain Manager and Management Consultant and is Managing Director of Veloc Ltd – supplier of a Finite Capacity Planning and Scheduling system. In this paper he examines the processes of Forecasting, Demand Planning and Demand Management.
Steve’s research has suggested a high degree of confusion and lack of clarity surrounding what constitutes forecast, demand planning etc. and so he sets out here to provide clear and unambiguous definitions for each element of the demand projection process :-
Forecasting:
To use a range of information and tools including both statistical analysis of history and forecasting algorithms to generate a clean projection of demand which excludes the impact of seasonal and/ or promotional activities.
Demand Planning:
The use of collaborative processes and communication coupled with historical analysis and other forecasting tools to add information to the base forecast regarding promotional, seasonal or other activities.
Demand Management:
To ensure the demand plan is incorporated into the wider business and operational plans of both supplier and customer. To manage the activities in the total supply chain to deliver accuracy of demand versus the demand plan and supply that is on time and in full.
In addition the subjects of Capacity Planning and Collaborative Planning are briefly discussed and finally he proposes a process by which all of the elements should come together to deliver an improved business outcome.
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New Features - Optimise and Recovery
Monday, 03 October 2011 00:00
New for October 2011
Veloc just got even better! The fast and flexible finite capacity planning tool, Veloc, just got even better due to the addition of Capacity Optimisation and Capacity Recovery Options.
These functions are designed to address the most common issues experienced by manufacturers (and specifically FMCG manufacturers) in todays challenging supply markets, namely the times when either you can see a period where you just don't have the capacity to make what is required and even more importantly when that period is now!
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