page 1
page 2
page 3
page 4
page 5
page 6
page 7
page 8
page 9
page 10
page 11
page 12
page 13
page 14
page 15
page 16
page 17
page 18
page 19
page 20
page 21
page 22
page 23
page 24
page 25
page 26
page 27
page 28
page 29
page 30
page 31
page 32
page 33
page 34
page 35
page 36
page 37
page 38
page 39
page 40
page 41
page 42
page 43
page 44
page 45
page 46
page 47
page 48
page 49
page 50
page 51
page 52
page 53
page 54
page 55
page 56
page 57
page 58
page 59
page 60
page 61
page 62
page 63
page 64
page 65
page 66
page 67
page 68
page 69
page 70
page 71
page 72
page 73
page 74
page 75
page 76
page 77
page 78
page 79
page 80
page 81
page 82
page 83
page 84

Businessexcellence September 07 8 demand In the first article of this series on sales and operations planning (June 2007), we defined S&OP as an integrated business management process through which the executive/leadership team continually achieves focus, alignment, and synchronization among all the functions of the organization. This includes sales and marketing, operations, supply chain management, finance, and product development. In part two (July 2007), we described the first step of the S&OP process, the product management meeting. This step covers the future direction of the product portfolio. It includes new products, additions to the product lines, product improvements, repositioning of current Integrated business management means managing all the business resources via the sales and operations planning process. In the third of a six part series, John Schorr explains the demand review process The review

the plan. Specifically, action plans are created to assure that the anticipated demand happens. The plans also help to prioritize the demand when there is a shortage of supply. And when demand exceeds supply, the plan defines the policy that determines how the product is to be allocated among the various customers. There are four major steps in the demand management process: 1. Create the demand plan. The first thing is to predict what your customers are going to buy. A demand plan is the forecast plus the assumptions behind the forecast plus the action plans to make the demand plan happen. There is a significant difference between a forecast and a demand plan. A forecast is typically a number generated either by a statistical forecast package or developed manually based on history. Historical data is projected into the future using a series of algorithms to identify patterns and trends. By connecting where you Strategic management September 07 Businessexcellence 9 products, and end-of-life rationalization of older products. The second step of the S&OP process is the demand review (Figure 1), which is the focus of this article. The output of the demand review is a timely aggregate unconstrained demand plan which becomes the basis for the integrated set of planning numbers used throughout the sales and operations planning process. The key to this step is in having an excellent demand management process. Demand management is the function of recognizing all of the demand for the products and services that are required to support the marketplace. Demand management encompasses the activities of demand planning, order entry, and order promising. Demand elements include customer orders, sister division requirements, samples, displays, spare parts, and internal needs, such as branch warehouse/distribution center requirements, interplant orders, and aftermarket and service requirements. Service demand includes that which is required for implementation support and maintenance or repair support. The major components of demand management include the demand plan, the assumptions behind the plan, and the action plans necessary to execute