MWUG

The Financial Impact of Demand PlanningRonald Fischer & Jeff Livingston

Senior Solutions Consultants

September 19, 2016

Agenda

• Why Financial Sales and Operations Planning• Demonstration of FS&OP• Typical Benefits• Q & A

Why Financial Sales and Operations PlanningQAD Demand Planning

• Measure the financial impact of all demand and supply chain planning decisions

• Ensure demand and supply plans support financial objectives

What is the purpose of FS&OP?FS&OP

Integrated & CollaborativeSales & Operations Planning

(S&OP)

DSCP Technology PlatformIntegrated End-To-End Demand & Supply Chain Planning (DSCP)

Network & Inventory Optimization (NIOP)

Collaboration Simulations

Integration Analysis

ProductionPlanning

DistributionPlanning

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Tact

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Stra

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ProcurementPlanning

Buy Make Deploy Sell

DemandPlanning

Sales & Operations Planning (S&OP)

Financial S&OPFinancial S&OP

Demand Planning

SupplyPlanning

Demand Balancing

Management Review

1 2 3 4

Revenue Planning

CostPlanning

ProfitabilityPlanning

FinancialReview

Measure the financial impact of S&OP decisions

Demonstration of F&SOPQAD DSCP

FS&OP AdvantagesQAD DSCP

QAD DSCP

Source: Gartner Five-Stage S&OP Maturity Model

S&OP Improvement One Step at a Time

Gartner Leaders – Summary of BenefitsDemand Driven Value Chain/FSOP Value Proposition

• Demand-Driven Supply Chain Planning Leaders Have:• 15% Less Inventory

• 17% Better Order Performance

• 35% Shorter Cash-to-Cash Cycle

times

• Which Translates To:• 60% Better Profit Margins

• 65% Better EPS

• 2-3 X ROA

• 1/10 the Stock outs of their peers

Source:

• Increase in forecast accuracy: 10 to 40 points

• Decrease in inventory: 10 to 50%

• Increase in fill rate: 6 to 30 points

• Increase in gross profit margin: 5 to 15 points

• Decrease in working capital needs: 5 to 25%

QAD DynaSys DSCP Customer BenefitsQAD DSCP Value Proposition

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http://www.qad.com/solutions/demand-and-supply-chain

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