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Supply Chain Planning for Dummies

An easy-to-understand guide to getting started with demand planning.
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Plex DemandCaster
Value Calculator

The Plex DemandCaster Supply Chain Planning value calculator is a conservative calculation of the financial impact of a comprehensive demand and supply planning and/or sales and operations planning (S&OP) process. For example, the value does not include the time saved by automating much of the analysis done with spreadsheets at most companies. In addition, the demand planning value calculation does not include the improvements that can be made with the time savings. In many cases, these savings alone cover the annual cost of DemandCaster.

As a guide to assess your demand planning value, please consider that DemandCaster customers have typically achieved strong financial results within months of implementation, including the following:

  • Reducing inventory between 20% and 30%.
  • Increasing service levels by 10%
  • Decreasing production lead times from 60% to 77%.
  • Improving manufacturing capacity from 22% to 30%.
  • Increasing sales revenues per employee between 24% and 33%.

Complete the form below with your companies numbers and objectives to project the demand planning value in your operation. Below is a summary description of the information required in each section:

  • Company Information: In order to receive a copy of this value worksheet you will be required to complete the requested information. However, if you do not require a copy, you may complete the information and view the result without submitting.
  • Current Financial Performance: Input the required fields with your current annualized Revenue, Cost of Goods Sold, Inventory, and Customer Service performance data
  • Goals/Assumptions: Input the required fields with your desired inventory turns and service level improvement goals. Estimate your annual DemandCaster cost.

The following assumptions will be used to calculate value:

  • Service level performance will improve via better deployment of inventory resources. Assume impact will help increase revenue by 25% of the improved performance.
  • Cash flow improvement is a combination of cash created via reducing inventory and COGS improvements.
  • Improved inventory management provides additional benefits that are excluded for simplicity sake.

The calculator will calculate the cash flow impact and value of the initiative.

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