Centralize Forecasting for Customer and Interplant Demands Using Planning Materials

Centralize Forecasting and Improve Delivery Lead Times by Planning Non-Variable Components of the Family of Products

In a typical supply chain, organizations have field locations or distribution centers that stock inventory to cater to customer demands (sales orders) and the stocks are replenished by the manufacturing locations via stock transport orders. Without an SAP planning strategy, manufacturing locations would have trouble forecasting for sales orders and stock transport orders. Organizations can enhance their SAP planning strategy by centralizing forecasting for both customer and interplant demand using planning materials.

After reading this article you will be able to:
- Centralize forecasting of non-variable components of assemble-to-order and make-to-order products to achieve better replenish lead times;
- Set up “planning with a PM” strategy with enhanced capability of PM forecast;
- Implement enhancements in your stock requirements list (MD04) and total requirements display (MD73) for accurate reporting on forecast consumption across your network; and
- Set up master data and review execution results.

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MEET THE AUTHORS

Venkata Ramana Nethi, CSCP, CPIM Manager IT Build-Run Operations & Quality, Schlumberger
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Venkata Ramana Nethi, Manager IT Build-Run Operations & Quality at Schlumberger, has 20 years of experience including SAP and domain expertise in manufacturing and planning. He joined Cameron in 2010, which was acquired by Schlumberger in 2016, and is responsible for SAP production planning, advanced planning and optimization (APO), and Quality modules including process study, design, implementation, and support in manufacturing and supply chain business transformation solutions. Before joining Schlumberger, Venkata was an SAP production planning consultant at Wipro Technologies, where he led SAP PP implementation and support projects for a global client base. Prior to that, he was manager at VOLTAS manufacturing unit based in India where he was responsible of production planning and shop floor manufacturing processes of refrigerator and commercial cooler products for CPG customers. Venkata has CSCP and CPIM certifications and his expertise ranges from business case analysis to implementation and production support engagements in manufacturing and supply chain planning transformation initiatives. He is also involved in sales and operations planning supported by SAP Integrated Business Planning and the solution’s integration with various systems to support demand and supply planning.