September 26th, 2012 plan4demand

SUPPLY PLANNING LEADERSHIP EXCHANGE PRESENTS:

The web event will begin momentarily with your hosts:

Highlight the key functionality of JDA’s Fulfillment &

Master Planning modules

Compare and contrast their relative strengths

Provide a guide as to which may be more suitable

for your business model

Answer the question, should you ever use both?

2

What Scenario Best Describes Your Situation? Make your selection on the right side of your screen

Select all that apply

3

A. I am trying to determine which module best fits

my business

B. I am currently using Fulfillment and am

wondering if I should switch to Master Planning

C. I am currently using Master Planning and am

wondering if I should switch to Fulfillment

D. None of the above

Demand

(Unconstrained

market demand) New Product

his

tory

PLM

Demand Management

Supply (Constrained

product availability)

Cap

acit

y

Tra

nsp

ort

atio

n

Inventory

Supply Planning

Supportable

Demand

Orders Shipments

Allocation Supportable Plan

Order Fulfillment

S&OP

Logistics & Fulfillment Planning

4

On the surface products look very similar

They are both focused on supply planning

They both can create a Master Production Plan and

a Distribution Requirements Plan

However they have different strengths which are

important to understand

5

…with greater focus on distribution than on

manufacturing e.g. need to re-distribute after

initial deployment

…with large multi-level networks with

large number of DC's and a much smaller number of

plants

…have a non-complex

manufacturing environment which

is simply constrained across

few resources

6

Source: JDA

7

Review

Unconstrained

Plan

Level Loads

Review & Resolve

Exceptions

Finalize the Master

Production Plan

To Manufacturing

Scheduling

To Distribution

Planning

…with greater focus on manufacturing

with more complexity, e.g.

multi-tier processing

…that need to constrain across multiple areas simultaneously

…that need to create a master

plan to meet prioritized demand

8

Determine Sequence

• Identify hierarchy level of a SKU in relation to other SKUs

• Converts all demand types into orders with a priority

• Schedule based upon inventory needs and constraints

Generate Plan

• Creates supplies to satisfy demand orders

• Creates constrained shipment plan

Generate Supporting Data

• Populates tables that can be used to peg demand orders to supply orders and vice versa

• Populates resource capacity and utilization table

• Populates demand, supply, and inventory projection tables

9

Capabilities Fulfillment Master

Planning

Create a Distribution Requirements Plan (DRP)

Create a Master Production Plan using constraint based

planning

Allow you to configure your inventory policies to influence

your replenishment strategy, e.g. safety stock settings

Create a deployment plan

Generate time phased replenishment, makes’ moves and

buy’s across network

Although not exhaustive, this list highlights their

similarities

10

Business Issues Fulfillment Master

Planning

Have high value stock that it makes sense to re-

deploy instead of make or buy?

Regularly have products being produced across

more than one production line in the same factory?

Find yourself in a constrained supply situation and

need to prioritize customer orders over safety

stock?

Don’t have a transportation system and need to

build loads prior to it passing to your 3PL?

11

Which of these Supply Chain characteristics do you have?

Make your selection on the right side of your screen

Select all that apply

12

1. Manufacturing Process

A. We have a relatively simple manufacturing process

B. We have a complex manufacturing process

2. Distribution Environment

A. We have a large multi-tier distribution network

B. We have a fairly limited distribution network

3. Inventory Deployment

A. We are regularly re-deploying inventory across our network

B. We infrequently re-deploy inventory

Have high value stock that it makes sense

to re-deploy instead of make or buy?

By using Dynamic Deployment in Fulfillment

you can decide whether to re-deploy

inventory across the network before you make

or buy

With items that are costly to produce or

procure the additional transportation costs

may well be worth it

You can configure parameters that will

suggest a re-deployment before a planned

manufacturing or purchase order

13

Regularly have products being

produced across more than one

production line in the same factory?

Master Planning is better at doing this

because it allows you to prioritize

alternate resources and run a solve

Alternate sourcing that looks first at the

primary, then at the secondary resource

Fulfillment is more cumbersome for the

planner to move SKU’s to other

resources and re-plan

14

Find yourself in a constrained

supply situation and need to

prioritize customer orders over

safety stock?

Master Planning is better because it

allows you to track the type of

demand on a order throughout the

process so that you can decide to

prioritize on a customer order or

forecast vs. safety stock

In Fulfillment demand gets lumped

together so you have none of the

ability to prioritize

15

Don’t have a transportation

system and need to build

loads prior to it passing to

your 3PL?

Fulfillment has a load builder

that allows you to build loads

Master Planning does not have

this capability

16

Business Issues Fulfillment Master

Planning

Have high value stock that it makes sense to re-

deploy instead of make or buy?

Regularly have products being produced across

more than one production line in the same factory?

Find yourself in a constrained supply situation and

need to prioritize customer orders over safety

stock?

Don’t have a transportation system and need to

build loads prior to it passing to your 3PL?

17

You could!

If your environment is both

manufacturing and distribution

intensive

Prioritization of demand is key within

your business model. This is only

available within Master Planning

The rebalancing of inventories

between different sites is critical. This

is only available within Fulfillment

18

Fulfillment

Planning parameters to

correctly model CPP

take time

Ongoing updates

required when network

settings change

Master Planning

More planning

parameters to set up

and maintain

CP with MP requires high

data quality

MP is more granular.

relies upon more settings

and complexities

End user Effort

High Medium Low

Set up

Eff

ort

High

Medium

Low

X

End user Effort

High Medium Low

Set up

Eff

ort

High

Medium

Low

X

19

JDA Fulfillment

Simple to maintain

Distribution Focus

Simple Mfg

JDA Master Planning

Simultaneous Constraints

Prioritize Demand

Complex Mfg

20

October 3rd

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Tips to Optimize JDA’s Demand Planning Modules

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