Application of PSM technology for planning and management of assortment in B2B and B2C companies
MAGAZINE №6 (83) December 2017
AUTHORS MILOV S.N.
CATEGORY Analysis in logistics and SCM Inventory management Logistics service management Retail companies’ corporate logistics
ABSTRACT
Nowadays Russian trading companies have to carry out their product portfolio policies in conditions of tough competition, presence of numerous goods vendors in the market and constant product portfolio renewal. These factors significantly complicate the process of sales forecasting. On the other hand, increasing the accuracy of planning through assortment management at the operations level allows you to use additional features to increase profitability. Several articles will describe practical application of the author»s concept entitled “Product Status Management” in contemporary B2B and B2C companies in order to improve the quality of planning. It took more than 15 years to gather information and formalize this concept in the course of practical work. Initially, the author worked on the issue of elaboration of mathematical forecasting methods by stock keeping units (SKUs). However, in practice he became convinced that the way of solving this problem largely lies in the sphere of administration, management of the product portfolio and the Roles involved in the process rather than in the plan of improving the mathematical methods of forecasting. The proposed «Product Status Management» concept is a logical development of «Product Life Cycle» theory (Theodore Levitt) as well as ECR, S&OP and CPFR concepts. The concept of «Product status management» gives additional opportunities for profitability management and profit increase. It significantly simplifies the subsequent automatization of SCM processes. This article will introduce you to the basic elements of this concept relevant to the planning process.
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Sales & Operations Planning Success Factors
MAGAZINE №4 (81) August 2017
AUTHORS FRIDKIN S.E. - Demand Planning Lead, Estee Lauder Companies Russia/CIS (Moscow, Russia)
CATEGORY Modern concepts and technologies in logistics and SCM Supply chain planning
ABSTRACT
Rapidly changing market makes S&OP an essential basis for integrated corporate planning for most companies. Effective S&OP launch and run is possible with the deep preparation. The article describes basic elements of such preparation, which gives an opportunity to avoid a set of common risks. Those basic elements are: the standardization of control objects, process regimentation and IT services adaptation.
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Methods of Planning Improvement in the Supply Chain of Gold Mining Companies
MAGAZINE №1 (78) February 2017
AUTHORS NOVIKOVA A.Y.
CATEGORY Corporate logistics industrial companies Planning the supply chain Modern concepts and technologies in logistics and supply chain management
ABSTRACT
This article is devoted to the consideration of the integrated planning process organization in supply chains. This process is one of the main ones in the supply chain, because it helps to achieve the production quality, decrease total operational costs and volume of the storage materials, and also increase level of the company productivity. Currently, most of the companies which are interested in improving their efficiency through the supply chains integrated planning, faced a lot of problems related with the theory and methodology insufficient development of this direction in the supply chain. This problem mainly concerns companies in the extractive industries due to the fact that all scientific and practical research focused on studies of integrated planning in supply chain at the enterprises of commercial and industrial industries, such as FMCG sector, automotive, textile and light industry, etc. In this regard, in this article there will be described the relevance and necessity of integrated planning in supply chains of mining companies, and also a comprehensive approach which focused on the organization of integrated planning in supply chains of gold mining companies will be considered.
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The Peculiarities of Sales and Operations Planning in Wholesale Trading Company
MAGAZINE №1 (78) February 2017
AUTHORS
KULAKOV V.M. - Manager of product distribution, LLC "IRWIN 2" (Moscow, Russia)
CATEGORY Modern concepts and technologies in logistics and SCM Supply chain planning
ABSTRACT
During the last fifteen years wholesalers faced a great number of challenges including the desire of manufacturing companies to establish direct contacts with clients, bypassing wholesalers, and weakening suppliers influence. So, wholesalers started to find the way out of this situation. Some companies have changed their development course and strategy, others began to look for internal reserves to overcome hardships and to restrict their business in order to adapt to new conditions. One of the universal methods that can improve the company efficiency is Sales and Operations Planning. Nowadays the S&OP implementation is one of the main trends in different branches of industry, such as FMCG, vertically integrated fields of heavy engineering, automotive and aircraft industry and some others.
Wholesalers are in need of the mechanism that would allow them to plan their activities for several months ahead, basing on the current business conditions in industry, market forecasts and the analysis of available resources. Considering the fact that the ability to respond to the demand for the wholesale company is of a crucial importance to provide stable further development of the company and increase the resource efficiency, Sales and Operations Planning process implementation seems to be extremely appropriate for the wholesale company.
The main features and prerequisites of the organization of Sales and Operations Planning for enterprises of wholesale trade are described in the article. The general algorithm the Sales and Operations Planning cycle for the wholesale company is also represented and the participants of the S&OP process and their roles are described. Furthermore, the peculiar features of Sales and Operations Planning for various supply chain configurations for the wholesalers are additionally discussed in the article.
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Implementation Of Collaborative Planning And Replenishment Technologies In Retail
MAGAZINE №5 (76) October 2016
AUTHOR SOKOLOV А.А.
CATEGORY Modern concepts and technologies in logistics and SCM Retail companies’ corporate logistics Inventory management Supply chain planning
ABSTRACT
The analysis of logistic processes optimization possibilities in the retail network on the Russian market. Direction of inventory
management in the supply chain of X5 Retail Group was selected for optimization. In research it is show the rationale for the choice of IT-solutions to the S&OP methodology implementation. Three standard modules on the basis of JDA's technology (JDA Demand, JDA Promotions Management & Optimization, JDA Fulfillment) were used for configuration of the simulation model. In research results of a simulation model are presented, which prove achievable goals to reduce inventory level in the supply chain and reduce index out-of-stock.
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Specifics of Sales and Operations Planning in gold-mining companies
MAGAZINE №2 (73) April 2016
AUTHORS ERMOLINA M.V., NOVIKOVA A.Y.
CATEGORY Corporate logistics industrial companies Logistics integration and coordination Planning the supply chain Modern concepts and technologies in logistics and supply chain management
ABSTRACT
An integrated volume planning in the form of sales and operations planning is considered as a default universal method applicable to any business in any industry. Meanwhile, numerous researches on implementation of this process focus mainly on the downstream industries, such as automotive, FMCG etc, leaving the upstream extractive industries without due attention. But the latter industries also need a managerial mechanism allowing foreseeing and reacting to the expected imbalance between forecasted demand and resources available to fulfill it.
Thus, this article reviews necessity and specifics of sales and operations planning in gold mining holdings. The specifics include, firstly, the rules of the demand formation and prolonged supply deficit on the market, and secondly, the need to involve numerous business units of vertically integrated business structure into the planning process. Based on the specifics revealed an aggregated model of planning process is proposed and main questions to deal with on each step of the process are articulated. The model proposed differs from the standard one by (a) the stages sequence: particularly, new product and demand planning are proposed to be held in parallel to each other, and operations planning starts from the definition of mining volumes and only then procedes to the processing capabilities; (b) planning objects on each stage: for instance, new product planning should focus on new gold ore minings, and demand planning – on forecasting of the price rather than demand volume; (c) an additional planning contour on the level of business units, in line with the main process flow on the corporate level.
Keywords:
Operational planning order-related industries in the supply chain (on the example of LLC «Repair-mechanical plant «Gazpromneft-Omsk Refinery»)
MAGAZINE №4 (69) August 2015
GRIGORIEV L.Y. - BEG (St. Petersburg, Russia)
CATEGORY Modern concepts and technologies in logistics and supply chain management Planning the supply chain Corporate logistics industrial companies
ABSTRACT
Although on the surface budgeting is seen as the main process, among the factors of its efficiency in the first place is closely associated with the process of formation of the annual operating plan. Especially, the importance of this process increases with the current trends of the transition from mass production to customization.
Thus, the reasonable budgeting will be possible only if we pre-carry out detailed planning of operating activities in the physical units. The question is, what level of aggregation we can afford when planning the operations and is it necessary to make their scheduling on the stage of operational (tactical) management?
In this article the approach to structuring activities based on modern organizational techniques is formulated, the methodology of formation of the annual operating plan of the company is proposed, are considered the need and opportunities for scheduling execution of orders at the annual time horizon for the enterprise with a high degree of production diversification in the conditions of orders of varying complexity and duration of execution
Keywords:
Transformation of strategic objectives to the plan of operational activity: Sales and Operations Planning
MAGAZINE №3 (56) June 2013
AUTHOR Shmatalyuk A.E., Petrunya N.
CATEGORY Logistics integration and coordination Modern concepts and technologies in logistics and supply chain management Planning the supply chain Corporate logistics industrial companies
ABSTRACT
It is shown that in recent years the increasing number of the companies introduces in the production activity process of Sales and Operations Planning - S&OP. The purpose of this process – to balance demand with production and logistic operations, having synchronized thus operational and financial planning, and also to connect strategic planning with daily operating activities.
The example of realization of process of S&OP at the large metallurgical enterprise - "Aubert&Duval" is given.
Keywords:
What is behind a warehouse?
MAGAZINE №1 (54) February 2013
AUTHOR Hruschova O.V.
CATEGORY Planning the supply chain Modern concepts and technologies in logistics and supply chain management Inventory management Warehouse Logistics
ABSTRACT
What is Sales and Operations Planning: attractive theory or real tool useful in Russian environment? The article says about S&OP implementation experience in one large FMCG company. The story starts with discovering reasons of company problems then investigate implementation issue and demonstrate S&OP benefits when it’s in use.
Keywords:
The possibility of combining the processes S&OP and CPFR in the framework of the full cycle of integrated planning in the supply chain
MAGAZINE №5 (64) October 2014
AUTHOR ERMOLINA M.V.
CATEGORY Modern concepts and technologies in logistics and supply chain management Planning the supply chain Logistics integration and coordination
ABSTRACT
One of the major supply chain management problems is uncertainty that impacts both demand and supply sides of the chain. Current integrated planning practices offer their tools to decrease this uncertainty from the enterprise as well as from the whole supply chain view. That is why examination of possible integration of two such practices – namely, sales and operations planning (S&OP) and collaborative planning, forecasting and replenishment (CPFR) – into a single end-to-end planning and execution cycle may be of some practical interest. To do so major characteristics of both processes are compared and possible junction points are determined. For example, a sure strength of CPFR is in the well addressed cycles of collaborative operational planning and execution, alongside with strategic planning outline; while S&OP provides an efficient tactical planning tool. S&OP develops internal enterprise planning cycle, while CPFR allows to include there additional information about future possibilities and constraints. After defining junction points different approached to the implementation of the proposed end-to-end process are discussed: from the strategic level to execution and from execution to strategy. In the end it is proposed to choose the latter evolutional variant as it allows for step by step improving of the process from simplicity to complexity.
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