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Demand and
Integrated Business
Planning
A story about a strategic
supply chain capability (Jun 2016)
2
Agenda: 1 hour
Demand and Integrated Business Planning
A story about a strategic supply chain capability…
3
• better understand the basic
concepts behind Demand
Planning (DP) and Integrated
Business Planning (IBP)
Objectives
Figure 1
At the end of the
presentation you should:
• be able to endorse the need for
the capabilities and review the
proposed framework
• better understand what you
and your teams will need to do
to support the capabilities
4― Warren Buffett
American business magnate, investor and philanthropist
“Someone's sitting in the
shade today because
someone planted a tree a
long time ago.”
Introduction
Figure 2
5
Where are we today?
• Do we know whether
our short term
operational decisions
are aligned with our
long term strategy?
• Are we continuously working together
towards a single, shared plan?
• Do we understand
our cross
functional (sales,
marketing, supply,
finance) objectives
and priorities?
• Do we understand the needs of our
customers and are we able to
clearly demonstrate our value? • Are we able to
negotiate the
best contract
terms with our
suppliers?
No, not really…Figure 3
6
Where we are…
• We lack visibility into our
customers and our supply
chain requirements… • We aren’t able to adjust to
changing conditions because
we can’t analyse our options
accurately and quickly…
• We aren’t able to
consistently identify
areas for improvement…
an organisation without demand planning (DP)
and integrated business planning (IBP)…
Figure 4
7
• DP and IBP are best practice
capabilities that help key stakeholders
make better decisions.
• The capabilities help key
stakeholders identify
areas for improvement
and generate savings.
• The capabilities
ensure that key
stakeholders
continuously
work together
to develop a
shared
understanding of
short and long
term goals and
priorities.
Figure 5
Where we could be…
an organisation with demand planning (DP)
and integrated business planning (IBP)…
8
Introduction
What benefits can we expect?
"Those companies without a robust Integrated
Business Planning process need to act now to close
the gap in capabilities and management support in
order to maintain their competiveness going
forward.“
S&OP - A Critical Process for Superior Performance
Brian Ball, Sep 2012, Aberdeen Group
"Companies that have successfully implemented
mature S&OP have seen significant improvements,
such as a 2% to 5% increase in revenue, a 7% to 15%
reduction in inventory."
Toolkit: S&OP Maturity Self-Assessment for Supply Chain Leaders,
Nicha Tohamy, Jan Kohler, Marko Pukkila, Debashis Tarafdar, Aug
2013, Gartner Group
reduced
inventory
18-46%
reduced
safety
stock
11-45%
increased
revenue
10-15%
increased
on-time
delivery
10-50%
increased
forecast
accuracy
18-25%
increased
productivity
30-45%
Source: QuintiQ. (2014, Oct 26). Closing the loop on S&OP Plans. Slide 8. Retrieved from
https://www.slideshare.net/quintiq/closing-the-loop-on-sop-plans
Source: Oliver Wight, Survey of 40 Clients
9
Introduction
How have the capabilities evolved?
Source: Oliver Wight. (2017). Transition from S&OP. Retrieved from
http://www.oliverwightasiapacific.com/en-GB/integrated-business-planning/transition-from-sop
10
Introduction
How do DP and IBP help key
stakeholders make better decisions?
SystemsProcess
People
11
Introduction
• Key external stakeholders:
Who works together to develop a shared
understanding and generate savings?
• Key internal stakeholders:
Category Team
Service Delivery Team
Supply Team
Finance Team
Executive Team
12
Introduction
How do the capabilities link to strategy?
Source: QuintiQ. (2014, Oct 26). Closing the loop on S&OP Plans. Slide 6. Retrieved from
https://www.slideshare.net/quintiq/closing-the-loop-on-sop-plans
13
Introduction
• The basic building blocks are already in place and
the concepts and benefits are transferable.
We can implement DP and IBP:
Source: The Institute of Business Planning and Forecasting
• Over the past 30 years, many leading
enterprises across a wide variety of
industries have been able to successfully
implement these capabilities.
SystemsProcess
People
• We have the basic organisation
structure, roles and data
required to get started.
14
― Leonardo da Vinci
Italian polymath whose areas of interest included invention, painting,
sculpting, architecture, science, music, mathematics, engineering, literature,
anatomy, geology, astronomy, botany, writing, history and cartography
“Learning is the only
thing the mind never
exhausts, never fears,
and never regrets.”
Key Concepts
Figure 6
Key Concepts
What, Who, When, How
15
• A demand plan is a consensus
projection of the materials and
services that an organisation
expects to provide to its customers.
What is a demand plan?
• The plan is developed in units and
communicated in all terms
required by stakeholders.
• The plan includes projections for
both current (baseline) and new
materials and services and looks
forward at least 18 months.
Key Concepts
What, Who, When, How
16
Who provides input to a demand plan?
• A demand plan represents a
commitment to the customer and is
developed with input from those
closest to the customer.
Service Delivery &
Category Teams
• A demand plan is
created on a rolling
monthly basis.
• Each month provides
an opportunity to
review performance
(using forecast
accuracy and
forecast bias metrics)
and assumptions.
When is the demand plan created?
17
How does the plan get integrated?
Key Concepts
What, Who, When, How
Source: Oliver Wight International. Integrated Business Planning. Retrieved from
https://supplychainblog.aimms.com/2014/04/an-introduction-to-integrated-business-planning-optimization/
Demand Planning Process
Customer InputCategory Input
Integrated Business Planning Process
Source: Crum, C. with Palmatier, G. E. (2003). Demand Management Best Practices: Process,
Principles and Collaboration. Integrated Management Series. Cover. J. Ross Publishing.
18
Every organisation’s DP and IBP capabilities are unique…
Key Concepts
What, Who, When, How
Source: QuintiQ. (2014, Oct 26). Closing the loop on S&OP Plans. Slide 7. Retrieved from
https://www.slideshare.net/quintiq/closing-the-loop-on-sop-plans
Key Concepts
Capability Maturity Stages
19
Phases II and III
(13 to 24 Months)
Specialised System
Stage 3
Internally based
consensus plan
Stage 4
External partner
collaboration
Stage 5
Network
collaboration
• tight collaboration
between internal
functions
• consensus-driven
demand plan that
considers
operational risk
• increased financial
alignment
• demand-planning
segmentation
frameworks
• value-chain-
based demand
plan
• integration with
NPI process
• demand-planning
COE
• outside-in view of
demand
• network-based
demand plan
• support new
demand streams
• joint, value-chain-
focused metrics
Excel based (Adhoc)
Phase I (Next 12 Months)
Baseline forecast
generation
Standardised,
scalable
processes
Stage 1
Stage 2
• usage driven,
bottom up forecast
• short-term
execution focus
• inside-out view of
demand
• siloed functions
• statistical forecast
using historical
data
• formal demand-
planning
organisation
• Emerging internal
collaboration
The demand
planning
capability
will be
introduced in
stages.
Source: Salley, A. & Tarafdar, D. (2015). Apply the Supply Chain Maturity Model for Better Demand Planning. Page 6.
Retrieved from https://www.gartner.com/doc/3033826/apply-supply-chain-maturity-model
Key Concepts
Capability Decision Tools (Trend Analysis)
20
Demand
Planning will
work with key
stakeholders to
create forward
forecasts that
consider both
future
assumptions
and past
usage.
Values Values
Category
Total Usage AUD$
(Past 12 Months using
AVG Price)
Total Forecast AUD$
(Next 12 Months
using AVG Price)
Total Usage Quantity
(Past 12 Months)
Total Forecast
Quantity
(Next 12 Months)
%
Difference
Quantity
ABC Matrix Rank
Total Usage Quantity
(Past 12 Months)
Total Forecast
Quantity
(Next 12 Months)
% Difference
Cateogry 1 $10,629,413 $11,274,107 13,156,166 15,320,045 16.4% A (Top 60%) 12,796,917 14,977,783 17.0%
Category 2 $3,640,189 $4,219,232 13,248 12,574 -5.1% B (Next 20%) 2,719,712 2,735,692 0.6%
Category 3 $1,072,478 $1,182,029 977,099 1,084,377 11.0% C (Next 15%) 1,462,140 1,477,125 1.0%
Category 4 $612,377 $678,335 442,728 415,111 -6.2% D (Final 5%) 269,250 254,303 -5.6%
Category 5 $596,208 $579,370 2,555,408 2,500,699 -2.1% F 0 0 0.0%
Category 6 $372,831 $405,217 67,671 79,358 17.3% Total 17,248,019 19,444,902 12.7%
Category 7 $92,149 $96,822 35,425 32,714 -7.7%
Category 8 $5,120 $5,238 22 23 3.9%
Category 9 $6,129 $0 253 0 -100.0%
Total $17,026,893 $18,440,351 17,248,019 19,444,902 12.7%
Key Concepts
Capability Decision Tools (Forecast Bias Detection)
21
• bias towards
overestimating usage
expectations
Chronic
Over Forecasting
Chronic
Under Forecasting
Root
Cause
Impact
• excess of inventory
• shortage of working
capital
• bias towards
underestimating
usage expectations
• shortage of
inventory
• low customer
service levels
• high out of stocks
Demand
Planning will
work with key
stakeholders to
identify
forecast bias
and improve
accuracy.
Key Concepts
Capability Decision Tools (Segmentation Strategies)
22
New Active
End
of Life
Product Life CycleABC Classification
A
C
B
D
Dimensions:
1. Quantity
2. AUD$
3. Strategic or Other Priority
Predictability
Demand
Planning will
work with key
stakeholders to
identify
priorities using
various
segmentation
strategies.
The following
segmentation
analysis can
be used to
better
understand
priorities for
one region.
Similar
opportunities
exist for other
regions.
Key Concepts
Capability Decision Tools (Segmentation Strategies)
23
Why do we
support so many
D SKU’s? These
items only
contribute 5%
towards revenue
yet consume
considerable
resources and
add complexity.
Are our SKU’s in
the correct MRP
type inventory
category and at
the correct life
cycle stage?
Key Concepts
Capability Decision Tools (Integrated Summary)
24
Demand
Planning will
work with key
stakeholders to
create
dashboards to
provide visibility
of forward
forecasts by
region.
As the capability matures,
the dashboards will
include projections for
forward procurement and
inventory and the
planning horizon will
extend.
Values Values Material Count
Category
Total Usage AUD$
(Past 12 Months
using AVG Price)
Total Forecast
AUD$ (Next 12
Months using
AVG Price)
Total Usage
Quantity (Past 12
Months)
Total Forecast
Quantity
(Next 12
Months)
%
Difference
Quantity
ABC Matrix Rank
Total Usage
Quantity
(Past 12 Months)
Total Forecast
Quantity
(Next 12
Months)
% Difference Row Labels
V1
(DC Stock)
PD
(Vendor Direct)
ND
(Vendor Direct)
Total
Category 1 $10,629,413 $11,274,107 13,156,166 15,320,045 16.4% A (Top 60%) 12,796,917 14,977,783 17.0% A (Top 60%) 253 216 14 483
Category 2 $3,640,189 $4,219,232 13,248 12,574 -5.1% B (Next 20%) 2,719,712 2,735,692 0.6% B (Next 20%) 253 462 29 744
Category 3 $1,072,478 $1,182,029 977,099 1,084,377 11.0% C (Next 15%) 1,462,140 1,477,125 1.0% C (Next 15%) 462 1,414 55 1,931
Category 4 $612,377 $678,335 442,728 415,111 -6.2% D (Final 5%) 269,250 254,303 -5.6% D (Final 5%) 801 3,824 497 5,122
Category 5 $596,208 $579,370 2,555,408 2,500,699 -2.1% F 0 0 0.0% F 104 1,130 205 1,439
Category 6 $372,831 $405,217 67,671 79,358 17.3% Total 17,248,019 19,444,902 12.7% Total 1,873 7,046 800 9,719
Category 7 $92,149 $96,822 35,425 32,714 -7.7%
Category 8 $5,120 $5,238 22 23 3.9% Category (All)
Category 9 $6,129 $0 253 0 -100.0%
Total $17,026,893 $18,440,351 17,248,019 19,444,902 12.7% Material Count Potential Life Cycle State
ABC Matrix Rank NEW (<6 mon) ACT EOL (0 in 6 mon) Total
A (Top 60%) 2 446 38 486
B Next 20% 33 614 98 745
C (Next 15%) 134 1,385 414 1,933
D (Final 5%) 598 2,323 2,207 5,128
F 0 0 1,461 1,461
Total 767 4,768 4,218 9,753
Sum of Total Fiscal Year FAMMIS SOA Status Sum of Total Fiscal Year FAMMIS SOA Status Sum of Total Measure Fiscal Year
2016 YTD 2016 YTD Grand Total 2016 YTD 2016 YTD AUD$ AUD$ Qty Qty
Cost Centre Name Cost Centre No SOA SOA Material Group Name Material Group No SOA SOA ABC Matrix Rank 2016 YTD 2015 2016 YTD 2015
Centre 1 710412 1,315,310 85,480 1,400,791 Centre 1 651525 1,432,530 77,444 A (Top 60%) 6,174,126 10,608,662 7,912,750 14,376,856
Centre 2 710353 1,025,020 118,581 1,143,601 Centre 2 651538 1,059,365 179,798 B (Next 20%) 2,346,613 3,271,152 1,730,407 3,053,896
Centre 3 630336 845,272 142,591 987,863 Centre 3 651020 739,438 78,942 C (Next 15%) 1,777,403 2,382,261 997,590 1,534,210
Centre 4 710404 546,687 52,076 598,763 Centre 4 651521 730,392 50,491 D (Final 5%) 597,461 767,902 178,746 294,789
Centre 5 630410 542,998 46,998 589,997 Centre 5 651524 621,823 106,826 Total 10,895,603 17,029,978 10,819,493 19,259,751
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-200,000 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000
Predicability(RSauarePast12Month)
PRODUCT IMPORTANCE
(Quantity Past 12 Month Usage)
"A" "B" "C"
y = -9457.6x+2E+06
R² = 0.2965
y = 38124x+36440
R² = 0.5669
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Sumof
Jul
Sumof
Aug
Sumof
Sep
Sumof
Oct
Sumof
Nov
Sumof
Dec
Sumof
Jan
Sumof
Feb
Sumof
Mar
Sumof
Apr
Sumof
May
Sumof
Jun
Sumof
Jul
Sumof
Aug
Sumof
Sep
Sumof
Oct
Sumof
Nov
Sumof
Dec
Sumof
Jan
Sumof
Feb
Sumof
Mar
Sumof
Apr
Sumof
May
Sumof
Jun
Sumof
Jul
Sumof
Aug
Sumof
Sep
Sumof
Oct
Sumof
Nov
Sumof
Dec
Sumof
Jan
Sumof
Feb
Sumof
Mar
Sumof
Apr
Sumof
May
Sumof
Jun
2014 2015 2016YTD
Summary by Fiscal Month
(QTY Jul-2013 to Feb-2016)
Material Free Text 2017 Forecast 2017 Forecast
Use the Pivot Tables to review regional usage by either quantity (QTY) or dollars (AUD$). The tables can be used to review data from the following perspectives:
· Category View (use Category, Material Group, Material GroupName, OA TrackingNumber, Material , Primary Vendor or Primary Vendor Name bythe appropriate Measure and PO Type )
· Regional View (use Business Area, Cost Centre, Material, Supply Plant by the appropriate Measure and PO Type)
· Supply View (use Primary Vendor, Primary VendorName, Supply Plant, ABC Matrix Rank by the appropriate Measure and PO Type)
· Finance View (use Cost Element, Cost Centre, ABC Matrix Rank by the appropriate Measure and PO Type)
Considerations:
· The forecast summary tables utilise the concept of material average price (tocontrol for the impacts of price variance allowing a clearer comparison of past to future quantities). The usage summary tables utilise the AUD$ derived directly from FAMMIS KSB1 data.
· In the future, the report will be expanded to include projections for forward procurement and forward inventory (as the demand planning capability is further developed).
18,902,531 19,259,751
10,819,493
4,528,237
6,479,430
10,288,075
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
2014 2015 2016YTD
Summary by Fiscal Year
(QTY Jul-2013 to Feb-2016)
Material Free Text
REGIONAL DEMAND PLANNING DASHBOARD (Concept Only)
Forecast and Usage for Region B
Data Source: FAMMIS KSB1 for WA (Goods Issues) and WE (PO Goods Receipts) document types and cost centres BA0000 to BA9999
Measure: QTY or AUD$ Period: Fiscal Year from Jul-2013 to Feb-2016
Data and Approach Require Validation by Stakeholders
17,301,802
17,949,590
10,273,823
917,324 645,670 202,949 527,581 571,161
286,719
5,943 3,000
74,054
59,196
32,813 29,170
27,501
19,672
48,661
504
4,528
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2014 2015 2016YTD 2014 2015 2016YTD 2014 2015 2016YTD 2015 2014
71 63 39 10 78
Summary by Supply Type and Plant by Fiscal Year
(QTY>1000, Material Only, Jul-2013 to Feb-2016)
WA (Goods Issues) WE (PO Receipts)
Use the table to validate the FAMMIS
MRP Type against the 2 dimensional
ABC ranking (QTY and AUD$). Review
V1 materials with a D or F class (these
materials add cost and complexity
and should be reconsidered unless
they fulfil a clinical or strategic need).
Review PD and ND materials with an
A or B class (to ensure sufficient
customer service levels are
maintained). Double click on a cell to
R squared is an indicator of the
degree of fit with the forecast model.
0% indicates that the model explains
none of the variability (of the data
around its mean). 100% indicates that
the model explains all of the
variability (of the data around its
mean). A low value does not
necessarily mean that a model is a
poor fit. However, judgement is
required.
1,364,869
1,259,858
1,379,8621,351,7981,333,869
1,537,787
1,200,203
1,391,248
y = 4074.1x+1E+06
R² = 0.0101
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Sum of Jul Sum of Aug Sum of Sep Sum of Oct Sum of Nov Sum of Dec Sum of Jan Sum of Feb Sum of Mar Sum of Apr Sum of May Sum of Jun
Summary by Fiscal Month (Material Only)
(QTY Jul-2013 to Feb-2016)
2014 2015 2016 2017 Forecast
TOP COST CENTRES
(AUD$ 2016 YTD Demand Type = Material)
TOP MATERIAL GROUPS
(AUD$ 2016 YTD Demand Type = Material)
FOUR QUADRANT MODEL
(for differentially managing the demand forecast, classification period: Jul-2014 to Feb-2016)
Quadrant 3
Low Importance and
HighPredictability
Quadrant 1
HighImportance and
High Predictability
Quadrant 4
Low Importance and
Low Predictability
Quadrant 2
HighImportance and
Low Predictability
3
1
4
2
ABC CLASSIFICATION and PRODUCT LIFE CYCLE ANALYSIS
(for differentially managing the demand forecast, classification period: Jul-2014 to Feb-2016)
FORWARD FORECAST SUMMARIES
(QTY and AUD$, past 12 months and next 12 months, using Excel linear trend algorithm and 2016YTD material average price)
Use the table to review the product
life cycle stage against the 2
dimensional ABC ranking (QTY and
AUD$). Review NEW and ACT
materials with a D class (these
materials add cost and complexity
and should be reconsidered unless
they fulfil a clinical or strategic need).
Review EOL materials and consider
phase out and replacement options.
Double click on a cell to get a detail
list to review.
9,899,006
996,598
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
No SOA SOA
2016YTD
SOA Status Summary
(AUD$ 2016YTD Material and Free Text)
Material
329
157
359
386
504
1,429
0
500
1,000
1,500
2,000
2,500
continuous intermittent
Demand Signal Type (Material Only)
(Count)
A B C
USAGE SUMMARIES
Key Concepts
Process and People
25
Demand
Planning will
work with key
stakeholders to
develop a
calendar to
support
requirements.
Key Concepts
Systems
26
Demand Planning
will work with key
stakeholders to
identify specific
system
requirements.
Visionaries
LeadersChallengers
Niche Players
Source: Payne, T. (2015, April 29). Magic Quadrant for Sales and Operations Planning Systems of Differentiation.
Page 2. Retrieved from https://www.gartner.com/doc/reprints?id=1-2EC75A5&ct=150501&st=sb
Key Concepts
Systems
27
DP and IBP
systems will need
to integrate with
other key systems
(including both
ERP and data
warehouse
systems.)
28
― Charles Kettering
Founder of Delco, American inventor, engineer, businessman
“High achievement
always takes place
in the framework of
high expectation.”
Project Framework
Figure 7
Framework
Considerations
29
• The project framework has been endorsed by two specialised Gartner analysts
and a leadership partner.
• The project goal statements align with demand management best practices:
Oliver Wight, Institute of Business Forecasting and Planning, Gartner
• The project will be using a phased approach both to minimise risk and to provide
an opportunity for progress review and approval at each phase.
• The project will be using a task based approach to ensure all project goal and
scope statements are considered and delivered at the appropriate time.
Framework
Considerations
30
The 34 page project framework document outlines the project approach and
considers the following aspects in detail:
• Project Definition
• Project Scope
• Project Plan
• Key Participants
• Project Constraints and Risk Assessment
• Project Principles and Communication
31
― Jeff Bezos
an American engineer, technology and retail entrepreneur,
investor and philanthropist best known as the founder, chairman,
and chief executive officer of Amazon
“If you don’t
understand
the details of
your business
you are going
to fail.”
Framework Detail
Figure 8
32
Supporting documents have been removed to protect confidentiality.
Framework Detail
The Opportunity
The capabilities
will address
critical gaps.
The capabilities
will deliver
defined benefits.
The capabilities
will be delivered
using a task
based and
phased
approach.
A communication
plan has been
developed to
engage key
stakeholders.
The capabilities
will meet
defined process,
system and
people
objectives.
Project roles
have been
clearly defined.
Project team
members have
been selected
from critical,
cross functional
business areas.
Risks have been
identified and
will be managed.
33
Where would we like to be?
The capabilities
would enable us to:
• make better
decisions,
• work together
towards common
goals,
• generate savings.
Do we agree with the
proposed benefits
and the need for the
capabilities?
Organisations with Demand Planning
and Integrated Business Planning
Figure 9
34
Conclusion
What comes next?
• Do we agree with the
proposed, phased
approach?
• Do we have your
support to continue
with Phase I?
• Do we have your
support to progress
to Phase II?
Figure 10
Othersupplychainstories…
Aligned Supply Chain Metrics
Twomey, Elaine. (2017, Mar). Retrieved from https://www.slideshare.net/ElaineTwomey1/aligned-supply-chain-metrics
Aligned New Product Development (NPD) Approval Process
Twomey, Elaine. (2017, Feb). Retrieved from https://www.slideshare.net/ElaineTwomey1/aligned-new-product-development-npd-approval-process
Othersupplychainstories…
Demand and Integrated Business Planning
Twomey, Elaine. (2016, Jun). Retrieved from https://www.slideshare.net/ElaineTwomey1/demand-and-integrated-business-planning
Supply Chain Experience
Twomey, Elaine. (2017). Retrieved from
https://www.slideshare.net/ElaineTwomey1/supply-chain-experience
Process Improvement and Project Management Portfolio
Twomey, Elaine. (2017). Retrieved from
https://www.slideshare.net/ElaineTwomey1/process-improvement-and-project-management-portfolio
37
References
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Figure 4 Rido. (Photographer). Business team hiding their faces [digital image]. Retrieved from https://www.shutterstock.com/image-photo/business-
team-hiding-their-faces-behind-95466670
Figure 5 Rawpixel.com. (Photographer). Direction Decision Chance [digital image]. Retrieved from
https://www.shutterstock.com/image-photo/direction-decision-chance-opportunity-intersection-concept-261757220
Figure 6 Myper. (Photographer). Leonardo da Vinci [digital image]. Retrieved from
https://www.shutterstock.com/image-photo/leonardo-da-vinci-one-greatest-mind-9178411
Figure 7 (Photographer). Charles Kettering [digital image]. Retrieved from
http://www.365daysofmotoring.com/showonthisday/article/13413
Figure 8 (Photographer). Jeff Bezos [digital image]. Retrieved from
https://img.washingtonpost.com/rf/image_1484w/2010-2019/WashingtonPost/2013/08/05/National-Enterprise/Images/151367140-2098.jpg
Figure 9 Kurhan. (Photographer). Group of Industrial Workers [digital image]. Retrieved from
https://www.shutterstock.com/image-photo/group-industrial-workers-business-team-isolated-108943724
Figure 10 Alphaspirit. (Photographer). Business Team Drawing a new Complex Project [digital image]. Retrieved from
https://www.shutterstock.com/image-photo/business-team-drawing-new-complex-project-496380232
The End
39
Demand and Integrated Business Planning
a strategic supply chain capability…
• These documents are at a draft
stage and are intended to illustrate
concepts only…
• The next step is to seek input from
key stakeholders…

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Demand and IBP: Strategic Supply Chain Capabilities

  • 1. Demand and Integrated Business Planning A story about a strategic supply chain capability (Jun 2016)
  • 2. 2 Agenda: 1 hour Demand and Integrated Business Planning A story about a strategic supply chain capability…
  • 3. 3 • better understand the basic concepts behind Demand Planning (DP) and Integrated Business Planning (IBP) Objectives Figure 1 At the end of the presentation you should: • be able to endorse the need for the capabilities and review the proposed framework • better understand what you and your teams will need to do to support the capabilities
  • 4. 4― Warren Buffett American business magnate, investor and philanthropist “Someone's sitting in the shade today because someone planted a tree a long time ago.” Introduction Figure 2
  • 5. 5 Where are we today? • Do we know whether our short term operational decisions are aligned with our long term strategy? • Are we continuously working together towards a single, shared plan? • Do we understand our cross functional (sales, marketing, supply, finance) objectives and priorities? • Do we understand the needs of our customers and are we able to clearly demonstrate our value? • Are we able to negotiate the best contract terms with our suppliers? No, not really…Figure 3
  • 6. 6 Where we are… • We lack visibility into our customers and our supply chain requirements… • We aren’t able to adjust to changing conditions because we can’t analyse our options accurately and quickly… • We aren’t able to consistently identify areas for improvement… an organisation without demand planning (DP) and integrated business planning (IBP)… Figure 4
  • 7. 7 • DP and IBP are best practice capabilities that help key stakeholders make better decisions. • The capabilities help key stakeholders identify areas for improvement and generate savings. • The capabilities ensure that key stakeholders continuously work together to develop a shared understanding of short and long term goals and priorities. Figure 5 Where we could be… an organisation with demand planning (DP) and integrated business planning (IBP)…
  • 8. 8 Introduction What benefits can we expect? "Those companies without a robust Integrated Business Planning process need to act now to close the gap in capabilities and management support in order to maintain their competiveness going forward.“ S&OP - A Critical Process for Superior Performance Brian Ball, Sep 2012, Aberdeen Group "Companies that have successfully implemented mature S&OP have seen significant improvements, such as a 2% to 5% increase in revenue, a 7% to 15% reduction in inventory." Toolkit: S&OP Maturity Self-Assessment for Supply Chain Leaders, Nicha Tohamy, Jan Kohler, Marko Pukkila, Debashis Tarafdar, Aug 2013, Gartner Group reduced inventory 18-46% reduced safety stock 11-45% increased revenue 10-15% increased on-time delivery 10-50% increased forecast accuracy 18-25% increased productivity 30-45% Source: QuintiQ. (2014, Oct 26). Closing the loop on S&OP Plans. Slide 8. Retrieved from https://www.slideshare.net/quintiq/closing-the-loop-on-sop-plans Source: Oliver Wight, Survey of 40 Clients
  • 9. 9 Introduction How have the capabilities evolved? Source: Oliver Wight. (2017). Transition from S&OP. Retrieved from http://www.oliverwightasiapacific.com/en-GB/integrated-business-planning/transition-from-sop
  • 10. 10 Introduction How do DP and IBP help key stakeholders make better decisions? SystemsProcess People
  • 11. 11 Introduction • Key external stakeholders: Who works together to develop a shared understanding and generate savings? • Key internal stakeholders: Category Team Service Delivery Team Supply Team Finance Team Executive Team
  • 12. 12 Introduction How do the capabilities link to strategy? Source: QuintiQ. (2014, Oct 26). Closing the loop on S&OP Plans. Slide 6. Retrieved from https://www.slideshare.net/quintiq/closing-the-loop-on-sop-plans
  • 13. 13 Introduction • The basic building blocks are already in place and the concepts and benefits are transferable. We can implement DP and IBP: Source: The Institute of Business Planning and Forecasting • Over the past 30 years, many leading enterprises across a wide variety of industries have been able to successfully implement these capabilities. SystemsProcess People • We have the basic organisation structure, roles and data required to get started.
  • 14. 14 ― Leonardo da Vinci Italian polymath whose areas of interest included invention, painting, sculpting, architecture, science, music, mathematics, engineering, literature, anatomy, geology, astronomy, botany, writing, history and cartography “Learning is the only thing the mind never exhausts, never fears, and never regrets.” Key Concepts Figure 6
  • 15. Key Concepts What, Who, When, How 15 • A demand plan is a consensus projection of the materials and services that an organisation expects to provide to its customers. What is a demand plan? • The plan is developed in units and communicated in all terms required by stakeholders. • The plan includes projections for both current (baseline) and new materials and services and looks forward at least 18 months.
  • 16. Key Concepts What, Who, When, How 16 Who provides input to a demand plan? • A demand plan represents a commitment to the customer and is developed with input from those closest to the customer. Service Delivery & Category Teams • A demand plan is created on a rolling monthly basis. • Each month provides an opportunity to review performance (using forecast accuracy and forecast bias metrics) and assumptions. When is the demand plan created?
  • 17. 17 How does the plan get integrated? Key Concepts What, Who, When, How Source: Oliver Wight International. Integrated Business Planning. Retrieved from https://supplychainblog.aimms.com/2014/04/an-introduction-to-integrated-business-planning-optimization/ Demand Planning Process Customer InputCategory Input Integrated Business Planning Process Source: Crum, C. with Palmatier, G. E. (2003). Demand Management Best Practices: Process, Principles and Collaboration. Integrated Management Series. Cover. J. Ross Publishing.
  • 18. 18 Every organisation’s DP and IBP capabilities are unique… Key Concepts What, Who, When, How Source: QuintiQ. (2014, Oct 26). Closing the loop on S&OP Plans. Slide 7. Retrieved from https://www.slideshare.net/quintiq/closing-the-loop-on-sop-plans
  • 19. Key Concepts Capability Maturity Stages 19 Phases II and III (13 to 24 Months) Specialised System Stage 3 Internally based consensus plan Stage 4 External partner collaboration Stage 5 Network collaboration • tight collaboration between internal functions • consensus-driven demand plan that considers operational risk • increased financial alignment • demand-planning segmentation frameworks • value-chain- based demand plan • integration with NPI process • demand-planning COE • outside-in view of demand • network-based demand plan • support new demand streams • joint, value-chain- focused metrics Excel based (Adhoc) Phase I (Next 12 Months) Baseline forecast generation Standardised, scalable processes Stage 1 Stage 2 • usage driven, bottom up forecast • short-term execution focus • inside-out view of demand • siloed functions • statistical forecast using historical data • formal demand- planning organisation • Emerging internal collaboration The demand planning capability will be introduced in stages. Source: Salley, A. & Tarafdar, D. (2015). Apply the Supply Chain Maturity Model for Better Demand Planning. Page 6. Retrieved from https://www.gartner.com/doc/3033826/apply-supply-chain-maturity-model
  • 20. Key Concepts Capability Decision Tools (Trend Analysis) 20 Demand Planning will work with key stakeholders to create forward forecasts that consider both future assumptions and past usage. Values Values Category Total Usage AUD$ (Past 12 Months using AVG Price) Total Forecast AUD$ (Next 12 Months using AVG Price) Total Usage Quantity (Past 12 Months) Total Forecast Quantity (Next 12 Months) % Difference Quantity ABC Matrix Rank Total Usage Quantity (Past 12 Months) Total Forecast Quantity (Next 12 Months) % Difference Cateogry 1 $10,629,413 $11,274,107 13,156,166 15,320,045 16.4% A (Top 60%) 12,796,917 14,977,783 17.0% Category 2 $3,640,189 $4,219,232 13,248 12,574 -5.1% B (Next 20%) 2,719,712 2,735,692 0.6% Category 3 $1,072,478 $1,182,029 977,099 1,084,377 11.0% C (Next 15%) 1,462,140 1,477,125 1.0% Category 4 $612,377 $678,335 442,728 415,111 -6.2% D (Final 5%) 269,250 254,303 -5.6% Category 5 $596,208 $579,370 2,555,408 2,500,699 -2.1% F 0 0 0.0% Category 6 $372,831 $405,217 67,671 79,358 17.3% Total 17,248,019 19,444,902 12.7% Category 7 $92,149 $96,822 35,425 32,714 -7.7% Category 8 $5,120 $5,238 22 23 3.9% Category 9 $6,129 $0 253 0 -100.0% Total $17,026,893 $18,440,351 17,248,019 19,444,902 12.7%
  • 21. Key Concepts Capability Decision Tools (Forecast Bias Detection) 21 • bias towards overestimating usage expectations Chronic Over Forecasting Chronic Under Forecasting Root Cause Impact • excess of inventory • shortage of working capital • bias towards underestimating usage expectations • shortage of inventory • low customer service levels • high out of stocks Demand Planning will work with key stakeholders to identify forecast bias and improve accuracy.
  • 22. Key Concepts Capability Decision Tools (Segmentation Strategies) 22 New Active End of Life Product Life CycleABC Classification A C B D Dimensions: 1. Quantity 2. AUD$ 3. Strategic or Other Priority Predictability Demand Planning will work with key stakeholders to identify priorities using various segmentation strategies.
  • 23. The following segmentation analysis can be used to better understand priorities for one region. Similar opportunities exist for other regions. Key Concepts Capability Decision Tools (Segmentation Strategies) 23 Why do we support so many D SKU’s? These items only contribute 5% towards revenue yet consume considerable resources and add complexity. Are our SKU’s in the correct MRP type inventory category and at the correct life cycle stage?
  • 24. Key Concepts Capability Decision Tools (Integrated Summary) 24 Demand Planning will work with key stakeholders to create dashboards to provide visibility of forward forecasts by region. As the capability matures, the dashboards will include projections for forward procurement and inventory and the planning horizon will extend. Values Values Material Count Category Total Usage AUD$ (Past 12 Months using AVG Price) Total Forecast AUD$ (Next 12 Months using AVG Price) Total Usage Quantity (Past 12 Months) Total Forecast Quantity (Next 12 Months) % Difference Quantity ABC Matrix Rank Total Usage Quantity (Past 12 Months) Total Forecast Quantity (Next 12 Months) % Difference Row Labels V1 (DC Stock) PD (Vendor Direct) ND (Vendor Direct) Total Category 1 $10,629,413 $11,274,107 13,156,166 15,320,045 16.4% A (Top 60%) 12,796,917 14,977,783 17.0% A (Top 60%) 253 216 14 483 Category 2 $3,640,189 $4,219,232 13,248 12,574 -5.1% B (Next 20%) 2,719,712 2,735,692 0.6% B (Next 20%) 253 462 29 744 Category 3 $1,072,478 $1,182,029 977,099 1,084,377 11.0% C (Next 15%) 1,462,140 1,477,125 1.0% C (Next 15%) 462 1,414 55 1,931 Category 4 $612,377 $678,335 442,728 415,111 -6.2% D (Final 5%) 269,250 254,303 -5.6% D (Final 5%) 801 3,824 497 5,122 Category 5 $596,208 $579,370 2,555,408 2,500,699 -2.1% F 0 0 0.0% F 104 1,130 205 1,439 Category 6 $372,831 $405,217 67,671 79,358 17.3% Total 17,248,019 19,444,902 12.7% Total 1,873 7,046 800 9,719 Category 7 $92,149 $96,822 35,425 32,714 -7.7% Category 8 $5,120 $5,238 22 23 3.9% Category (All) Category 9 $6,129 $0 253 0 -100.0% Total $17,026,893 $18,440,351 17,248,019 19,444,902 12.7% Material Count Potential Life Cycle State ABC Matrix Rank NEW (<6 mon) ACT EOL (0 in 6 mon) Total A (Top 60%) 2 446 38 486 B Next 20% 33 614 98 745 C (Next 15%) 134 1,385 414 1,933 D (Final 5%) 598 2,323 2,207 5,128 F 0 0 1,461 1,461 Total 767 4,768 4,218 9,753 Sum of Total Fiscal Year FAMMIS SOA Status Sum of Total Fiscal Year FAMMIS SOA Status Sum of Total Measure Fiscal Year 2016 YTD 2016 YTD Grand Total 2016 YTD 2016 YTD AUD$ AUD$ Qty Qty Cost Centre Name Cost Centre No SOA SOA Material Group Name Material Group No SOA SOA ABC Matrix Rank 2016 YTD 2015 2016 YTD 2015 Centre 1 710412 1,315,310 85,480 1,400,791 Centre 1 651525 1,432,530 77,444 A (Top 60%) 6,174,126 10,608,662 7,912,750 14,376,856 Centre 2 710353 1,025,020 118,581 1,143,601 Centre 2 651538 1,059,365 179,798 B (Next 20%) 2,346,613 3,271,152 1,730,407 3,053,896 Centre 3 630336 845,272 142,591 987,863 Centre 3 651020 739,438 78,942 C (Next 15%) 1,777,403 2,382,261 997,590 1,534,210 Centre 4 710404 546,687 52,076 598,763 Centre 4 651521 730,392 50,491 D (Final 5%) 597,461 767,902 178,746 294,789 Centre 5 630410 542,998 46,998 589,997 Centre 5 651524 621,823 106,826 Total 10,895,603 17,029,978 10,819,493 19,259,751 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% -200,000 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 Predicability(RSauarePast12Month) PRODUCT IMPORTANCE (Quantity Past 12 Month Usage) "A" "B" "C" y = -9457.6x+2E+06 R² = 0.2965 y = 38124x+36440 R² = 0.5669 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Sumof Jul Sumof Aug Sumof Sep Sumof Oct Sumof Nov Sumof Dec Sumof Jan Sumof Feb Sumof Mar Sumof Apr Sumof May Sumof Jun Sumof Jul Sumof Aug Sumof Sep Sumof Oct Sumof Nov Sumof Dec Sumof Jan Sumof Feb Sumof Mar Sumof Apr Sumof May Sumof Jun Sumof Jul Sumof Aug Sumof Sep Sumof Oct Sumof Nov Sumof Dec Sumof Jan Sumof Feb Sumof Mar Sumof Apr Sumof May Sumof Jun 2014 2015 2016YTD Summary by Fiscal Month (QTY Jul-2013 to Feb-2016) Material Free Text 2017 Forecast 2017 Forecast Use the Pivot Tables to review regional usage by either quantity (QTY) or dollars (AUD$). The tables can be used to review data from the following perspectives: · Category View (use Category, Material Group, Material GroupName, OA TrackingNumber, Material , Primary Vendor or Primary Vendor Name bythe appropriate Measure and PO Type ) · Regional View (use Business Area, Cost Centre, Material, Supply Plant by the appropriate Measure and PO Type) · Supply View (use Primary Vendor, Primary VendorName, Supply Plant, ABC Matrix Rank by the appropriate Measure and PO Type) · Finance View (use Cost Element, Cost Centre, ABC Matrix Rank by the appropriate Measure and PO Type) Considerations: · The forecast summary tables utilise the concept of material average price (tocontrol for the impacts of price variance allowing a clearer comparison of past to future quantities). The usage summary tables utilise the AUD$ derived directly from FAMMIS KSB1 data. · In the future, the report will be expanded to include projections for forward procurement and forward inventory (as the demand planning capability is further developed). 18,902,531 19,259,751 10,819,493 4,528,237 6,479,430 10,288,075 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 2014 2015 2016YTD Summary by Fiscal Year (QTY Jul-2013 to Feb-2016) Material Free Text REGIONAL DEMAND PLANNING DASHBOARD (Concept Only) Forecast and Usage for Region B Data Source: FAMMIS KSB1 for WA (Goods Issues) and WE (PO Goods Receipts) document types and cost centres BA0000 to BA9999 Measure: QTY or AUD$ Period: Fiscal Year from Jul-2013 to Feb-2016 Data and Approach Require Validation by Stakeholders 17,301,802 17,949,590 10,273,823 917,324 645,670 202,949 527,581 571,161 286,719 5,943 3,000 74,054 59,196 32,813 29,170 27,501 19,672 48,661 504 4,528 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 2014 2015 2016YTD 2014 2015 2016YTD 2014 2015 2016YTD 2015 2014 71 63 39 10 78 Summary by Supply Type and Plant by Fiscal Year (QTY>1000, Material Only, Jul-2013 to Feb-2016) WA (Goods Issues) WE (PO Receipts) Use the table to validate the FAMMIS MRP Type against the 2 dimensional ABC ranking (QTY and AUD$). Review V1 materials with a D or F class (these materials add cost and complexity and should be reconsidered unless they fulfil a clinical or strategic need). Review PD and ND materials with an A or B class (to ensure sufficient customer service levels are maintained). Double click on a cell to R squared is an indicator of the degree of fit with the forecast model. 0% indicates that the model explains none of the variability (of the data around its mean). 100% indicates that the model explains all of the variability (of the data around its mean). A low value does not necessarily mean that a model is a poor fit. However, judgement is required. 1,364,869 1,259,858 1,379,8621,351,7981,333,869 1,537,787 1,200,203 1,391,248 y = 4074.1x+1E+06 R² = 0.0101 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 Sum of Jul Sum of Aug Sum of Sep Sum of Oct Sum of Nov Sum of Dec Sum of Jan Sum of Feb Sum of Mar Sum of Apr Sum of May Sum of Jun Summary by Fiscal Month (Material Only) (QTY Jul-2013 to Feb-2016) 2014 2015 2016 2017 Forecast TOP COST CENTRES (AUD$ 2016 YTD Demand Type = Material) TOP MATERIAL GROUPS (AUD$ 2016 YTD Demand Type = Material) FOUR QUADRANT MODEL (for differentially managing the demand forecast, classification period: Jul-2014 to Feb-2016) Quadrant 3 Low Importance and HighPredictability Quadrant 1 HighImportance and High Predictability Quadrant 4 Low Importance and Low Predictability Quadrant 2 HighImportance and Low Predictability 3 1 4 2 ABC CLASSIFICATION and PRODUCT LIFE CYCLE ANALYSIS (for differentially managing the demand forecast, classification period: Jul-2014 to Feb-2016) FORWARD FORECAST SUMMARIES (QTY and AUD$, past 12 months and next 12 months, using Excel linear trend algorithm and 2016YTD material average price) Use the table to review the product life cycle stage against the 2 dimensional ABC ranking (QTY and AUD$). Review NEW and ACT materials with a D class (these materials add cost and complexity and should be reconsidered unless they fulfil a clinical or strategic need). Review EOL materials and consider phase out and replacement options. Double click on a cell to get a detail list to review. 9,899,006 996,598 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 No SOA SOA 2016YTD SOA Status Summary (AUD$ 2016YTD Material and Free Text) Material 329 157 359 386 504 1,429 0 500 1,000 1,500 2,000 2,500 continuous intermittent Demand Signal Type (Material Only) (Count) A B C USAGE SUMMARIES
  • 25. Key Concepts Process and People 25 Demand Planning will work with key stakeholders to develop a calendar to support requirements.
  • 26. Key Concepts Systems 26 Demand Planning will work with key stakeholders to identify specific system requirements. Visionaries LeadersChallengers Niche Players Source: Payne, T. (2015, April 29). Magic Quadrant for Sales and Operations Planning Systems of Differentiation. Page 2. Retrieved from https://www.gartner.com/doc/reprints?id=1-2EC75A5&ct=150501&st=sb
  • 27. Key Concepts Systems 27 DP and IBP systems will need to integrate with other key systems (including both ERP and data warehouse systems.)
  • 28. 28 ― Charles Kettering Founder of Delco, American inventor, engineer, businessman “High achievement always takes place in the framework of high expectation.” Project Framework Figure 7
  • 29. Framework Considerations 29 • The project framework has been endorsed by two specialised Gartner analysts and a leadership partner. • The project goal statements align with demand management best practices: Oliver Wight, Institute of Business Forecasting and Planning, Gartner • The project will be using a phased approach both to minimise risk and to provide an opportunity for progress review and approval at each phase. • The project will be using a task based approach to ensure all project goal and scope statements are considered and delivered at the appropriate time.
  • 30. Framework Considerations 30 The 34 page project framework document outlines the project approach and considers the following aspects in detail: • Project Definition • Project Scope • Project Plan • Key Participants • Project Constraints and Risk Assessment • Project Principles and Communication
  • 31. 31 ― Jeff Bezos an American engineer, technology and retail entrepreneur, investor and philanthropist best known as the founder, chairman, and chief executive officer of Amazon “If you don’t understand the details of your business you are going to fail.” Framework Detail Figure 8
  • 32. 32 Supporting documents have been removed to protect confidentiality. Framework Detail The Opportunity The capabilities will address critical gaps. The capabilities will deliver defined benefits. The capabilities will be delivered using a task based and phased approach. A communication plan has been developed to engage key stakeholders. The capabilities will meet defined process, system and people objectives. Project roles have been clearly defined. Project team members have been selected from critical, cross functional business areas. Risks have been identified and will be managed.
  • 33. 33 Where would we like to be? The capabilities would enable us to: • make better decisions, • work together towards common goals, • generate savings. Do we agree with the proposed benefits and the need for the capabilities? Organisations with Demand Planning and Integrated Business Planning Figure 9
  • 34. 34 Conclusion What comes next? • Do we agree with the proposed, phased approach? • Do we have your support to continue with Phase I? • Do we have your support to progress to Phase II? Figure 10
  • 35. Othersupplychainstories… Aligned Supply Chain Metrics Twomey, Elaine. (2017, Mar). Retrieved from https://www.slideshare.net/ElaineTwomey1/aligned-supply-chain-metrics Aligned New Product Development (NPD) Approval Process Twomey, Elaine. (2017, Feb). Retrieved from https://www.slideshare.net/ElaineTwomey1/aligned-new-product-development-npd-approval-process
  • 36. Othersupplychainstories… Demand and Integrated Business Planning Twomey, Elaine. (2016, Jun). Retrieved from https://www.slideshare.net/ElaineTwomey1/demand-and-integrated-business-planning Supply Chain Experience Twomey, Elaine. (2017). Retrieved from https://www.slideshare.net/ElaineTwomey1/supply-chain-experience Process Improvement and Project Management Portfolio Twomey, Elaine. (2017). Retrieved from https://www.slideshare.net/ElaineTwomey1/process-improvement-and-project-management-portfolio
  • 37. 37 References Sources Figures (copy links to browser to view sources): Cover Ozerina, Anna. (Illustrator). Elegant Background [digital image]. Retrieved from https://www.shutterstock.com/image-vector/elegant-background-place-text-invitation-69112300 Figure 1 Kovop58. (Photographer). Hiker with Backpack [digital image]. Retrieved from https://www.shutterstock.com/image-photo/young-tourist-hiker-backpack-siting-on-559594144 Figure 2 Isett, Stuart. (Photographer). Warren Buffet [digital image]. Retrieved from http://images.huffingtonpost.com/2015-12-02-1449084331-7797041-warren_buffet_spotlight.jpg Figure 3 Cracho, Sfio. (Photographer). Businessman Flying [digital image]. Retrieved from https://www.shutterstock.com/image-photo/businessman-flying-rocket-backpack-trough-business-181968668 Figure 4 Rido. (Photographer). Business team hiding their faces [digital image]. Retrieved from https://www.shutterstock.com/image-photo/business- team-hiding-their-faces-behind-95466670 Figure 5 Rawpixel.com. (Photographer). Direction Decision Chance [digital image]. Retrieved from https://www.shutterstock.com/image-photo/direction-decision-chance-opportunity-intersection-concept-261757220 Figure 6 Myper. (Photographer). Leonardo da Vinci [digital image]. Retrieved from https://www.shutterstock.com/image-photo/leonardo-da-vinci-one-greatest-mind-9178411 Figure 7 (Photographer). Charles Kettering [digital image]. Retrieved from http://www.365daysofmotoring.com/showonthisday/article/13413 Figure 8 (Photographer). Jeff Bezos [digital image]. Retrieved from https://img.washingtonpost.com/rf/image_1484w/2010-2019/WashingtonPost/2013/08/05/National-Enterprise/Images/151367140-2098.jpg Figure 9 Kurhan. (Photographer). Group of Industrial Workers [digital image]. Retrieved from https://www.shutterstock.com/image-photo/group-industrial-workers-business-team-isolated-108943724 Figure 10 Alphaspirit. (Photographer). Business Team Drawing a new Complex Project [digital image]. Retrieved from https://www.shutterstock.com/image-photo/business-team-drawing-new-complex-project-496380232
  • 39. 39 Demand and Integrated Business Planning a strategic supply chain capability… • These documents are at a draft stage and are intended to illustrate concepts only… • The next step is to seek input from key stakeholders…