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From Forecasting to Demand Planning – A Closed Loop Approach Kai Trepte John Galt Solutions, Inc. May 6, 2003 Your Presenter Kai Trepte is the Vice President of Sales and Services for John Galt Solutions, Inc. He has worked for John Galt as both a sales leader and as a developer since he co-founded the company in 1996. Kai has over 12 years of experience in building business forecasting processes and collaborative business planning. Kai holds a degree in economics and computer science from Macalester College. Who Is John Galt? Founded in 1996 HQ Chicago, Illinois Over 5000 Customers Worldwide Focused on leading-edge forecasting, demand planning and collaboration software solutions for manufacturers Partners: The Forecast Xperts? Recognized Market Leader by Institute of Business Forecasting We Wrote the Book on Forecasting M3 Forecasting Competition Continuous Innovation Overview of The Forecasting and Demand Planning Process Planning Matrix – Typical Statistical Forecasting The reoccurring process of using statistics along with business knowledge to identify how much product to produce in a certain period to meet future demand Solve Your Business Issues Forecast Accuracy - Statistical Methods A Typical Forecasting Process Sales develops the forecast Finance develops the budget Sale alters the forecast to meet the budget Operations ignores the forecast and builds based on current orders Developing A Typical Forecast Implications of a Typical Forecasting Process Sales changes their plans to match the budget and therefore requests the wrong products at the wrong time To meet the budget, unsustainable sales are made to impact the future At some point, the process collapses and lowers initially planned sales As a result, the overall process fails Implication of a Typical Forecasting Process Implication of a Typical Forecasting Process Implication on Inventory Inventory levels are optimized based off of demand, customer service levels and lead-time Notification when
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