Implementing a demand and

supply planning system at

Toyota South Africa Motors

Dawie Poolman - Barloworld

Eric Swardt - Toyota

Agenda

1. Mission and Purpose

2. Project Summary

3. Solution Complexities & Challenges

4. Planning Horizons and levels

5. Demand Hierarchies

6. Fair distribution simulation example

7. Technical Solution Architecture

8. AMA Discussion

Mission and purpose

"The Demand Planning system is

an integrated planning system

for the Sales & Marketing

division, which manages the

Sales and Supply (SAS) process

of vehicles in Southern Africa and

optimize production orders in

line with customer demand,

considering pipeline stock, from

production order, to retail sale,

as well as constraints

throughout the supply chain”

Project Summary

Sales Planning

Supply Planning

Demand Chain

Management

Supply Chain Management

Decision Support

Solution Complexities & Challenges

Methodology & Terminology

Bidirectional solve (Pull then Push) at

multiple levels (Model Range and Short

Model Code)

Explicit Shipments Runtime

Integers & Proration

Fair Share between dealers at Model

Range level (Product group level)

Planning phases

Demand shaping

Complex Supercessions

Production Order Pegging

Customisations

Planning

horizon &

levels Strategic

Operational

3-4 months

Tactical

9 months Current + 3 years

Model Range + SMC

Model Range

Model Range + SMC + Colour + Trim

1.6 L

2 L

1.6 L Light grey leather

2 L Exclusive

2 L Standard

Corolla

Mix Volume

Market Forecast TSAM Forecast

Market

RGT-NAAMSA Market Data

BER – Economic Data TSAM Sales Transactions

Total

Vehicle Type

Segment

Distribution Channel

Market sales

TSAM

Integration

Total

Brand

Vehicle Type

Segment

Model Range

Distribution Channel

Short Model Code (SMC)

Dealer

Sales Region

District

TSAM Sales

24 m sales history 54 m horizon 60 m sales history 54 m horizon

1

2

3

4

5

6

7

Demand Hierarchies

Market forecast

TSAM Share of Market

TSAM Segment Share

Planning Hierarchy Levels

Fair Share simulation

• Real Dealer Data

• Model Range = Fortuner

• Assume only 80% of demand can be supplied available over time

Expectation:

20 % Average shortfall per dealer…..

Keeping all dealers equally unhappy

Simulation Results 1/2

Simulation Results 2/2

Technical Solution Architecture

Integration Layer

Cognos

BI

Layer

Market ODP

TSAM ODP

CAST Flow

National Scenario (for Production)

Model Range & SMC Scenarios

(for Dealer Distribution)

Simulation

Reporting

SAP/

eToyota

Custom GUIs

Barloworld Toyota

Planning Metrics

Stockholding

Sales Plan Accuracy

Production Order Accuracy

Time Saving and Overtime Saving

The automation of an effective planning process has made the (The Toyota Way) planning process more efficient.

All key planning metrics have improved or

remained stable since implementation

AMA (Ask Me Anything)