This presentation summarizes the advantages of coupling Openbravo ERP and frePPLe APS

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Openbravo Advanced Planning with FrePPLe
June 2016

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Business Benefits
Advanced Planning

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From the Financial perspective
Working Capital optimization
• WC =AR+IN-AP (current assets – current liabilities)
• WC-Ratio =AR+IN/AP (above but close to 1 is good)
A good Indicator of Operational Efficiency
Business Benefits
of Planning
From the Commercial perspective
Increased Turnover & Customer satisfaction by less stock-outs
From the Operational perspective
Reduced costs by Reduced Excess & Obsoletes
Reduced costs by Optimized Transport and WHse Utilization

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From the Organizational perspective
• Planning is a high-value activity.
• At best it is executed at a Central or DC level.
• A planner is well connected to other functions.
• Planning streamlines other activities in the Organization.
• The FrePPLe engine calculates an Optimized Supply Chain.
• The Openbravo Commerce suite allows to execute lean.
• The combination allows to move from people-dependency to
system-dependency.
Business Benefits
of Planning

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FrePPLe
• Supply Chain Planning engine
• Shop-floor Scheduling engine
• Powerfull, Versatile and Efficient
Openbravo
• Web-native Wide&Deep Enterprise functionality for mid-sized to
large Retailers
• Back-end and Front-end nurtured from same DB
• Intuitive and Productive User-Interface
The Perfect Match
and a
Winning Combination
Business Benefits
of FrePPLe / Openbravo Combination

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Index3
Business Benefits
Advanced Planning

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Advanced Planning
Components
Main Components of Advanced Planning
• Forecasting
1. Demand Forecasting
2. Forecast Analysis and Review
3. Forecast Consumption
• Inventory Planning
1. Inventory Parameters Optimization
2. Inventory Planning Review
• Replenishment Planning
1. Replenishment Modeling
2. Initial Replenishment plan Review
3. Export approved plan

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Advanced Planning
Forecasting
1. Demand Forecasting
1. Auto-Select and Auto-Tune between best forecast algorithm:
• Moving average – flat forecast
• Single exponential – flat forecast
• Double exponential – trending demand
• Winters – seasonal demand
• Croston – intermittent demand
2. Outlier detection and Correction
• User can interfere/force at any level and moment
Sales history
Expected
future sales

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Advanced Planning
Forecasting
2. Forecast Analysis & Review
1. Review the forecast and edit it with extra information
• Product Life Cycle approach
• Add forecast values for new products (fade-in)
• Reduce or remove forecast for old products (fade-out)
• Adjust forecast on agregated level / family item-level
• Add promotions
• Exclude exceptional one-off sales from the demand history
2. Review at product, location, customer and time dimension
• Region: Sales manager
• Customer: Account manager
• Product Range: Product manager
• Overall: General manager

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Advanced Planning
Forecasting
3. Forecast Consumption
1. Short term demand consists primarily of customer sales orders.
2. Longer term demand consists primarily of sales forecast
The forecast consumption algorithm reconciles both short- and long-term
demand into a Consolidated Demand Signal that is consistent and
complete across the chosen horizon.
The start&end, curve&angle and
length of the line that separates Open
Orders from Forecast is different per
industry, sector, geography and
product-type.

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Advanced Planning
Inventory Planning
1a. Inventory Parameters Optimization
• Dynamically computes inventory parameters per warehouse
• Users can override the values per period
Inventory Parameter Calculation options
Safety Stock
The safety stock parameter is derived from
the Desired Service Level, taking into
account the Supplier lead-times and the
Supplier delivery accuracy.
a) Computed suggestion
b) Fixed Quantity
c) #Days of Forecast
Reorder Quantity
The ROQ is derived from the Economic
Order Quantity (Wilson formula), taking
into account the Item costs, the Order
costs and the Holding costs.
a) Computed suggestion
b) Fixed Quantity
c) #Days of Forecast

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Advanced Planning
Inventory Planning
1b. Inventory Parameters Recommendation
• Stores, Outlets
• Number of products * outlets requires Agile Approach.
• Fixed Period with different periods per ABC classification.
• Periodical automated ABC-reclassification, f.i. monthly.
• Distribution Centers
• Volumes allow for an elaborated, Economical Approach
• Economic Order Quantity as General Guideline for matured products
• Exceptions:
• Deterioration products (expiry dates)
• Beginning of LifeCycle products (fade-in)
• End-of-LifeCycle products (fade-out)
• …
• Detect and Alerts for Outlier-Orders
• Outlier-Order = >50% of QtyAvailable + Inside Supplier LeadTime
• To be treated as exception by planner
• Dynamic Sourcing allows to bypass EOQ when demand urges satisfaction

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Advanced Planning
Inventory Planning
2. Inventory Planning Review
• Management by Exception: Calculated Stock-out Risk
• FrePPLe calculates the risk of stockouts per SKU, per Warehouse. This provides an
excellent starting point for the planner to fine-tune parameters, expedite orders or
alternative sourcing.
• Planners to review the Safety Stock to:
• Make sure the service levels associated to a SKU are appropriate and don’t generate
too much or not enough stock
• Set fixed quantities for SKUs where there is not enough demand history to fully rely on
the forecast
• Set fixed periods of forecast for fast movers to make sure no stockout will occur
• Planners to review the ROQ to:
• Make sure not to order too frequently
from a supplier.
• Ensure the ROQ are not too high
generating unnecessary stock.

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Advanced Planning
Replenishment Planning
1. Replenishment Modeling
• Bill of Material – From Supplier to Product
• Bill of Distribution – From Product to Customer
• All resources, All suppliers
• Generation of constrained or unconstrained plans
• Dynamic Sourcing
Source material by rules like “Cheapest source unless…”

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Advanced Planning
Replenishment Planning
2. Exception based Replenishment Review
• Late Order Analysis
• Drill down into a late order; Review its delivery plan and the causes for the delay
• Critical Purchase/Distribution review
• Understand for which open purchase orders the planner should contact
the supplier to expedite the delivery
• Excess inventory / safety stock violations
• Identify inventory outside the expected limits
3. Planned Orders to be exported to Openbravo
• Purchase orders
• Distribution orders

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Advanced Planning
Connector
Openbravo and FrePPLe Connector
Bi-directional propagation in the supply chain
• FrePPLe input from Openbravo
• Sales History
• Inventory
• Pending Orders (SO, PO, DO)
• Bill of Material, Bill of Distribution
• Product/Whse planning parameters
• FrePPLe output to Openbravo
• Purchase Orders
• Distributions Orders
• Recalculated Planning Parameters

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Thank you
Web: www.openbravo.com/contact
Email: info@openbravo.com
Spain Office: +34 932 725 947
India Office: +91 33 4004 7358
Mexico Office: +52 559171 1841
Thank you very
much for your
attention

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Disclaimer
This document outlines Openbravo’ s product direction and should be considered as a statement of intentions. It
should not be relied on in making a purchase decision. Openbravo has no obligation to deliver any functionality
mentioned in this presentation. The forward-looking statements in this document are subject to various risks and
possible future developments may change for several reasons, including but not limited to market changes and
Openbravo development team workload. Openbravo assumes no responsibility for any inaccuracy or omission in this
material.