Collaborative Demand Planning in Process

Outcome

A consolidated Updated Sales Budget/Sales Forecast in M3 BE that is based on forecasting close to the end-customers. The Updated Sales Budget/Sales Forecast is feasible with regard to the physical constraints in the supply chain and reflects a consensus between sales and supplying units.

The Updated Sales Budget/Sales Forecast can be transferred to forecasts per item in the Forecasting module or the Master Demand Schedule.

Data import and any forecast activities performed in M3 DMP do not affect M3 BE. The M3 BE is only affected when exporting data from M3 DMP. See Exporting Consolidated Sales Forecast Proposal.

Before Starting

Datasets to be used for collaborative demand planning in M3 DMP must be defined and activated in M3 BE. See Defining Datasets.

Processes

The process of Collaborative Demand Planning consists of three processes. Performing these processes makes up a complete forecast cycle.

Activity Description

1. Preparing forecasting cycle

   The administrator performs this process to prepare the forecasting activities for the present cycle. This includes importing Datasets to M3 DMP and enabling forecast values for the forecast period to be entered or changed. In addition, data, parameters and tools are structured, tailored, and distributed to the forecasters. See About Preparing forecasting cycle.

2. Performing distributed forecasting

   In this activity, the distributed process flow supported by M3 DMP is used to create a Sales Forecast Proposal based on Market Forecast Proposals. It is performed partly by the forecasters and partly by the administrator. The forecasters make a Market Forecast Proposal for their area of responsibility and return these to the administrator. The administrator combines the Market Forecast Proposals to one Sales Forecast Proposal. See Performing Distributive Forecasting.

3. Consolidating Sales Forecast Proposal

   The Sales Forecast Proposal needs to be verified and validated throughout the supply chain. This process includes adjusting the proposal to ensure feasibility and exploit opportunities in the supply chain. Also, supplying units throughout the supply chain must agree on one demand plan to reach a collaborative consensus. The consolidated Sales Forecast Proposal is exported back to M3 BE as an Updated Sales Budget/Sales Forecast. See About Consolidating Sales Forecast Proposal.