1. 3 Steps to Automating Forecast Collaboration
Streamline Supply Chain Forecast Planning with Current Technology
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2. Implement systems to
integrate with your ERP &
onboard your suppliers
3 Steps to Automating Forecast Collaboration
Since its inception a century ago, the practice of
Supply Chain Management has experienced
several transformations, evolving from a purely
administrative function to a critical strategic arm
that largely determines an organization’s success in
the current economy.
Even if your company has implemented some
form of automation in your ordering or payment
processes, chances are that you would still benefit
from a new analysis of gaps, needs, and priorities.
Are there ways to collaborate even smarter with
your partners, and plan more effectively?
Evaluate the tools
available to automate your
processes
Assess the needs of your
organization

3. In addition, the recent generation of rapid
technological advancement and the transition to
a global economy has mandated that companies
keep their competitive edge by taking advantage
of tools that provide access to real-time data and
instant collaboration with partners across the
globe.
According to a 2011 study by Aberdeen Group, up
to 49% of all companies were still using manual
processes for forecast planning and collaboration.
Is your organization one of these? If so, it’s time to
realistically assess what your company can do to
automate processes in order to increase efficiency
and profits, as well as decrease downtime, delayed
shipments, and supply shortages
To find out, establish a cross-functional project
team comprised of representatives from the
areas that would be affected by the collaboration
process change. At a minimum, this will likely
include members of Procurement (supply
ordering process), Planning (forecasting), and IT
(implementation strategy).
Why Automate Now?
Step 1.
Assess the needs of your organization.

4. Do you trust your Material Resource Planning (MRP) Data?
The first analysis your team should perform is
to determine the accuracy of your MRP data. If
the data pulled from your planning engine cannot
be trusted, improving your automated forecasting
and collaboration capabilities will not produce
the desired improvements in efficiency and profit
margins.
Does your MRP contain the most current data?
Once you’ve uncovered and remedied any issues
with data accuracy from your MRP, the next step is
to make sure that the data is pulled in real-time or
near-real-time. Current MRP data generates accurate
order quantities, forecasting, and delivery date
scheduling.
Do you have visibility into your suppliers’
inventory? The ability to view your supplier’s
on-hand stock using real-time data allows you
to accurately predict supplier commitments and
abilities to meet your demand. You can use this
capability to tighten inventory margins and delivery
schedules, mitigating the likelihood of a“Bullwhip
Effect.”
Can you communicate
with your suppliers in a
system that integrates with
your ERP? The abilities to
send automatic notification
emails and to communicate
supply issue details by using
notes and attachments are
powerful methods of saving
time, labor, and supply costs.
Instead of manually entering
data into multiple forms and
relying on several phone calls
and emails to place orders,
buyers and suppliers have
a single point of reference
for all orders. Additionally,
electronic records are
maintained for all orders
and communication, so the
“paper trail”is seamless.
Questions to Ask:
1. To what extent does
my company use time-
consuming processes (email,
spreadsheets, phone calls)
to process & communicate
orders?
2. How do I obtain information
about my suppliers’
inventory?
3. Do I have visibility into their
current and projected stock?
4. Can I collaborate with my
suppliers in my procurement
system, using real-time
demand and forecast data?
5. How tightly do I need to
tie my forecasting and
procurement systems
together?
6. Do they need to be
integrated in a common
solution/product?

5. Once you have assessed the gaps in your
forecast collaboration process and identified
the areas to be automated, it’s time to evaluate the
available solutions that can integrate with your
existing planning engine and ERP. You’re looking for
a solution that provides the degree of automation
you need, and that also delivers an impressive ROI.
Step2.
Evaluate the tools available to automate your processes.
Questions to Ask:
1. What automation solutions will integrate with my
existing planning engine?
2. What solution provides the functionality, service, and
support my company needs, at a price that justifies the
ROI?
3. What type of deployment option – On-Premise, Saas/
Cloud, or Hybrid – would be best for my organization’s IT
structure?
4. What type of integration is best suited for my existing
ERP – tight integration or loose integration using
middleware?
5. Does the chosen selection support the requirements,
languages, and IT capabilities of my suppliers?
6. Can my global suppliers access the solution via a secure
web portal, EDI, or B2B?
7. Can my suppliers use the solution to upload CSV or XML
files of on-hand inventory quantities
8. Can my suppliers send attachments, notes, and emails to
maximize collboration efficiency?
9. How long does it take to implement the solution at
supplier sites? How complicated is the learning curve?
10. What are the internal implementation costs?

6. Once you have selected the right solution for
your company’s automated forecasting process
and existing systems/technology, the final phase
is determining the best implementation process.
Ideally, your project team will be joined by external
implementation and solution specialists who will
customize the product to your specific needs.
Make sure you have all the internal resources you
will need for the implementation process, including
any hardware or other IT requirements, as well as
the appropriate time and budget allocations. Plan
to adequately train personnel who will be using the
new system, so that efficiency gains are realized
from the outset.
Questions to Ask:
1. What external and internal resources do I need for
the implementation process and team?
2. Can supplier onboarding be prioritized and
expedited?
Step 3.
Implement systems to integrate with your ERP and onboard your supplies.
Finally, prioritize and plan for the supplier
onboarding process, using the expertise of both
your internal IT professionals and the external
implementation team. It may be useful to create
a phased plan for rolling out the new system to
larger suppliers first, for example, or to those who
already share some of your systems. Determine
your priorities and create a realistic timeline for
onboarding and training your suppliers.

7. Taking the time to perform an in-depth
assessment of your forecasting and collaboration
processes to determine the best solution for
improving efficiency and increasing automation
can pay off big, especially if your company has
gaps in communication processes or problems
with MRP data accuracy. According to the 2011
Aberdeen study, a US-based consumer goods
company achieved the following improvements by
implementing an automated solution:
• Reduced number of days of inventory in hand by
24%
• Reduced lead timed by 28%
• Improved on-time customer delivery by 41%
How much improvement in excess inventory,
shipping times, ordering efficiency, and supplier
communication could your company realize by
deploying a solution that works with your existing
systems to maximize your capabilities?
Endnotes
1
Ericson, Carrie and Rycraft, Simon. “The Evolution of Supply Management.” Supply Chain Management Review. September/October 2011. 48-49.
2
Aberdeen Group. “Globalization: Linking Supply Chain Transformation to the Profit and Loss Statement.” Sep 2011.
3
TAKE Solutions, Inc. “Mitigating the Bullwhip Effect: Demand Collaboration Maximizes Efficiency throughout the Supply Chain.” 2012.
4
TAKE Solutions, Inc. “Exploring Deployment Options for Supply Chain Collaboration and Enterprise Solutions.” 2012.
5
TAKE Solutions, Inc. “Enterprise System Integration for Supply Chain Technology.” 2012.
And Finally...

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