Demand Management Technology Evaluation€¦ · Demand Management techniques should include not only sensing the needs of the future, but understanding and assessing who your desired

Demand Management Technology Evaluation

Authored By: Ann Grackin

February, 2006

Copyright ChainLink Research 2002-2006


© ChainLink Research, February 2006 ALL RIGHTS RESERVED

About ChainLink Research

ChainLink Research, is a Supply Chain research organization dedicated to helping executives improve business performance and competitiveness through an under-standing of real-world implications, obstacles and results for supply chain practices, processes, and technologies. The ChainLink Inter-Enterprise Model is the basis for our research; a unique, real-world framework that describes the multi-dimensional aspects of the links between supply chain partners. For more information, contact ChainLink Research at Harvard Square Center 124 Mount Auburn Street, Suite 200 N., Cambridge, MA 02138. Tel: (617) 762-4040. Email: [email protected]. Website: www.clresearch.com.



Demand Management Learning Chain • Demanding Times

www.chainlinkresearch.com/research/detail.cfm?guid=D4072115-8004-6D99-1CAB-2FA16D712650

• The Truth About VMI www.chainlinkresearch.com/research/detail.cfm?guid=D4068FE0-8004-6D99-1CA9-31204C44528F

• The Parallax View www.chainlinkresearch.com/research/detail.cfm?guid=535BC529-FC1A-E1C0-1D64-9C28B649D906

• Forecasting—The Endless Search www.chainlinkresearch.com/research/detail.cfm?guid=D406BDD7-8004-6D99-1CAD-CD4CEBEDCA9C

• From Forecasting to Integrated Demand Planning www.chainlinkresearch.com/research/detail.cfm?guid=D406A8CB-8004-6D99-1CAB-6D8B3A5CB0A0

• Predictive Demand Supply www.chainlinkresearch.com/research/detail.cfm?guid=D4080359-8004-6D99-1CA8-1A12768B1715

• The Third Paradigm www.chainlinkresearch.com/research/detail.cfm?guid=D40830F6-8004-6D99-1CA6-9128E07F32DA

• N-Tier Demand Management www.chainlinkresearch.com/research/detail.cfm?guid=D4080BC2-8004-6D99-1CA9-5551B01671BD



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Table of Contents

Demand Management Learning Chain Executive Summary—Demand Management………………………………………………...1

Why a Demand Management Report?..........................................................................1 What will you learn in this report?..................................................................................1

Understanding Demand Management Needs Today…………………………………………3

The Strategic View…………………………………………………………………………….3 Highlights and Innovations in Planning………………………………………………………...5

Data Analytics and Services………………………………………………………………….6 Risk Management……………………………………………………………………………..6 Rapid Response……………………………………………………………………………….7 Collaboration—Creating a Dynamic and Manageable Trading Network………………..8 Blending RFID DATA into the Demand Process…………………………………………..9 Migrating from Transaction Management to Understanding Events…………………...10 How Do I Capture Events?...........................................................................................11

Major Demand Planning Capabilities and Benefits………………………………………….12

Demand Planning Capabilities……………………………………………………………..12 Architectural Considerations—The Delivery Architecture...……………………………..16

Solution Evaluation……………………………………………………………………………...17

Process Views and Major Positioning……………………………………………………...17 Industry Views……………………………………………………………………………….. 18 Evaluating the Functionality...……………………………………………………………….21

Where will the Technology Go Next?................................................................................22

Better Data Management…………………………………………………………………….22 Market Sensing/Inference…………………………………………………………………...23 Digitizing Customer Behavior……………………………………………………………….23

Conclusions………………………………………………………………………………………24 Appendix 1— Further Readings……………………………………………………………….27

Appendix 2— Technology Firms discussed in this report…………………………………..28



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Executive Summary

WHY A DEMAND MANAGEMENT REPORT? The complexity of business today—working a myriad of partnerships with both the channel side and the transportation partners, as well as dealing with the challenges of fickle and sur-prising markets—requires not only more visibility into ongoing operations, but more intelli-gence to operate successfully. Leading companies continue to pursue and achieve signifi-cant improvements in business performance, through the adoption of innovative Demand Management technologies.

There is a significant difference in corporate performance, both in strategic and tactical re-sults, by companies who take Demand Management practices seriously. For example, Scotts became the supplier of the year to both Wal-Mart and The Home Depot, through sig-nificant attention to the technology focused on replenishments; Nissan turned around in the last few years, through the use of sophisticated market sensing. In their words, “That's why we think beyond the answer. And ask. Because only through this process of constant chal-lenge can real change occur.” Or the converse example: significant loss to shareholder value has been verified, as companies experience glitches in their supply chain.1 These impacts can represent 10% or more in loss to shareholder value—and that is real cash!

Demand Management is not simply forecasting, as in the traditional sense of counting how many things we might sell. Demand Management is a broader process, and must tackle the questions of what should we be selling and to whom should we be selling it? Who are our desired customers? What is the right pricing for these markets? It’s the vision thing—but it is validated through real systems.

Emerging technologies such as on demand, data subscription services, data analytics, and a new generation of collaborative software, offer us the opportunity to take a fresh look at Demand Management technology. In his report we examine the options, new approaches, and emerging technology offerings, as well as the traditional players (many firms have not even adequately implemented the basics fully).

WHAT WILL YOU LEARN IN THIS REPORT? New technology and full adoption of traditional approaches require a quick look at current business practices in order to put technology functionality and implementation approaches in context.2

_____________________________________________________________________________________

1 Vinod Singhal—College of Management, George Institute of Technology

2 This report will not be a treatise of Demand Management practices, but references will be provided for more in-depth understanding of these concepts.



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• Understanding Demand Management Needs Today: Revitalizing the Demand Manage-ment philosophy and its strategic value to the enterprise; establishing a framework for the enterprise focal areas.

• Innovations in Planning: The progress of the profession. What are the policy changes in government and business ecosystems that dictate change? What are the Performance Results that people are striving for? What are smart firms doing inter-enterprise in proc-ess, knowledge, and skills acquisition to further the profession?

• Major Demand Planning Capabilities: Progress is being made. There are many capabili-ties enabled by today’s technology, and even more capabilities are emerging.

• Solution Evaluations: What and who are the technologies for today?

• Where Is the Technology Going Next?: Emerging technologies and approaches that you should be asking for (and are already being used by the leading enterprises).

ChainLink Research conducted the research for this report through interviews with many firms that have successfully gained value from Demand Man-agement practices. These are new stories about fresh approaches. Therefore, in many cases, the firms have not yet approved the public pronounce-ments, so we may not always use their names. These interviews and cases provide an important validation of the technology firms’ claims of the value of their capabilities.

This report was created with the user/buyer in mind. It was not sponsored or financially underwrit-ten by any of the technology firms mentioned in this report. In some cases, these firms may not agree with our assessment.3 This report is not a market report, i.e., focused at the financials of market size and share. It is written for the user’s benefit.

________________________________ 3 The templates that support this report will be updated frequently on the TEC website; so go there for the latest updates. www.technologyevaluation.com/news/20060220.html



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Understanding Demand Management Needs Today

THE STRATEGIC VIEW Leading firms understand that Demand Management is all about the customer: What are their needs, spoken or latent, and how do we procure or design just enough to sell to them? Demographic dynamics challenge the as-sumptions of what worked on the shelf last year, if it actually did work. Software is ca-pable of recording and analyzing data within strict formats. But the reality is that life challenges a structural approach to knowledge. A great merchant or designer may be able to visualize a new product and who to sell it to, so most organizations need to understand the needs of their mar-kets in a broader context.

With more competitors, due to globaliza-tion, more channels, and a greater ability to refine markets (markets of one), getting this initial understanding and revising it consistently are critical. Customers are bored with finding the same products and brands everywhere. Yet, there are economic and knowledge challenges to getting unique brands into the chan-nel, to say nothing of after market issues.

Buyers attending product shows around the globe can be exposed to many technical inno-vations, but how do they link these innovations to their understanding of the market? How do they lead? When do they follow? How much will it cost to develop increased market share and meet demand? What is the channel strategy and what is the value of each chan-nel partner? What is the true value—cost—of promotions? How to assess risks?

Demand Management techniques should include not only sensing the needs of the future, but understanding and assessing who your desired customer is today. Many of these tech-niques are done within the various modeling analogs, but don’t become part of a consistent planning and execution platform.

In addition, business processes and systems strive to apply structure and consistency in order for computers to process data—but customer behavior and future demand live in the zone of variable or unpredictable. In fact, many of the new rage products would never have been created by evaluating replenishment numbers.



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As the knowledge and technology integration (visibility) capabilities increase, so does the expansiveness of the definition of the function. This is true in most supply chain areas—from sourcing all the way through to customer care and loyalty. There is a huge need to provide technology which will enable businesses to integrate their information into a comprehensive view of the business. Understanding how the thought processes, business events, and data connect and provide a more instructive view of the business, should rejuvenate our thinking about Demand Management and its effective use as a leadership activity that is critical to business success!

Most thoughts about Demand Management focus merely on the forecasting component. Although forecasting is essential, it is the middle, not the beginning of the Demand Manage-ment process. Here in Figure 1 you see the four major components of the Demand Man-agement process. We will refer to these throughout this report.

Figure 1

Demand Management

DiscoverCreate Grow

Fulfill•Market Sensing•Market/Analysis/Opportunities•Total Market ROI•Revenue Planning•Analytics•Collaborate

•Sales Channel•Product Demand Forecast•Distribution Channel•Create Demand Patterns•Pricing•Launch/Event Plan•Analytics•Collaborate

•Response Planning•Forecasting•Replenishment

•Promotion Planning•Performance/History•Evaluate/Create Demand Patterns•Analytics•Collaborate

•Response Planning•Forecast Adjustment•Replenishment execution

•Demand Shaping•Data Collection•Performance/Analytics•Collaborate

Demand Management

DiscoverCreate Grow







Demand Management

DiscoverCreate Grow









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Highlights and Innovations in Planning

In the last few years, firms along the supply chain—both the supply and the retail elements—have benefited from greater trading partner connec-tivity, as well as significantly cheaper telecommunications and mobility in-frastructures. This has enabled a more rapid market response,4 more collaborative approaches, and more On Demand services that can be relied upon to work in a pinch!

There has also been a resurgence of algorithmic approaches to sifting through the moun-tains of data to understand the patterns of market and customer behavior. These take sig-nificant compute power to achieve, and it is interesting that firms now are reaching for the ‘expert’ or domain leader for a component to bolt onto their traditional technology suites for these specialized capabilities. Demand planning vendors of old, boasting sometimes hun-dreds of customers, show no signs of abandoning their innovations. If they can keep pace and provide good partnerships, then they can ensure that evolutionary innovations are avail-able for their customers. Young firms like Terra Technology, Digital Tempus, Vivecon and Sockeye Solutions, for example, provide very different components for Demand Manage-ment, but they compliment, rather than compete with traditional suites.

Six key areas that are gaining momentum as part of the Demand Management approach:

• Data Analytics (provided as a service or On Demand)

• Risk Management

• Rapid Response Forecasting

• Trading Partner Collaboration

• Blending RFID Data into the Demand Process

• Event Management

These capabilities are not ‘islands’ of functionality. They need to be understood and bundled in, where appropriate, to manage demand.

___________________________________ 4 Read the Article: The Third Paradigm www.chainlinkresearch.com/research/detail.cfm?guid=D40830F6-8004-6D99-1CA6-9128E07F32DA



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DATA ANALYTICS AND SERVICES Sifting through the sands of data for meaning is a huge but necessary task to get back the information needed to master and manage demand. Traditional forecast modeling frequently uses hypothetical assumptions to create a structured outcome—the forecast. Most busi-nesses leave it at that. The process doesn’t look at the real business data (actuals) to find patterns—real behaviors—or provide unique models that are appropriate for your business and products. It doesn’t understand the impacts of business events (competition, promo-tions, events, forward buys, etc.) on your game plan. Precision is also required, since not all

products and markets behave the same way. In addition, products be-have differently as they move through the supply chain—to the channel, to the retailer, to the customer—and these patterns need to be understood to drive production, pricing and a myr-iad of business decisions (what promo-tions go with which partners; what products sell in which markets etc.) Applying an ancient set of algorithms may not cut it.

A new player in the data analytics arena is Digital Tempus. Although they are an emerging firm, they have already processed data for some of the biggest consumer product and retail firms (that is big data). Their work has uncovered true demand patterns and created new insights for these firms. Providing this as a service, ‘on demand’ means that Digital Tempus can complement legacy solutions and provide input to traditional supply chain activities such as sales and operation planning processes, product strategy and production processes, etc.

RISK MANAGEMENT Another emerging Demand Management approach is to use forecasting to manage the risk aspects of the supply chain. In this arena, the discussion was with Vivecon, an emerging firm in risk management technology. First, we discussed the need to include Risk assess-ment and management in the processes of the business.5 By looking at demand numbers, supply factors, and what can go wrong in the market, in the enterprise, etc., Vivecon facili-tates the creation of the range forecast. Since the one thing we all know about forecasts is

___________________________________ 5 Read the Article: The Third Paradigm www.chainlinkresearch.com/research/detail.cfm?guid=D40830F6-8004-6D99-1CA6-9128E07F32DA



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that they are wrong, a range forecast allows you to plot a range of possible outcomes (min/max, alternative scenarios, etc.) and then evaluate these possibilities based on risks and trade-offs. One alternative then becomes the basis for the demand plan for your supplier.6 Risk is a real issue in supply chain management, and to date, businesses have applied very little structure to building these methods into the planning process.

RAPID RESPONSE As we stated above, a better connectivity infrastructure opens the door to communication and closes the huge gap in response time in the Demand Management process. Forecast-ing activities of old (and today) are orchestrated affairs that ultimately lead to a fixed fore-cast. That becomes ‘the number’ that may get communicated up and down the chain. But we all know that life happens while we are making other plans, so a view into short cycle or real-time forecasting, or what ChainLink calls Rapid Response Demand Management, is needed.

Think about it: the time fencing game works on creating a rigid plan, but customers are not part of the game. Oh, sure you can get them later with markdowns, but a good product needs no markdown. So how do you sense the demand and change the plans? Platitude number two: make hay while the sun shines. Capturing the demand and changing the fore-cast and fulfillment means making money. Missing it means forfeiting gains—not just that sale, but a potential lifetime of add-ons.

Winning in markets means understanding them. So Demand Management can be a daily job, and today’s computer power can support daily analysis. Daily tweaking of the forecast helps reduce errors, and reducing errors reduces cost and improves sales. The adoption of these techniques in high tech com-panies has lead to the simplification of product offerings and mass cus-tomization (postponement). But that was not a strategy for consumer firms (i.e. packaged goods, hard-ware, apparel, etc. which have sea-sonal product offerings, as well as long distribution chains (ocean ship-ping) or retailers who demand rapid replenishments, rich assortments, and inventory on the shelf.

_____________________________________________________________________________________ 6 This is just where the software takes off to perform other analysis. But the rationalized plan is the first step. Then it allows you to evaluate various sourcing/buying using real options approaches.



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These types of firms must get closer to the point of consumption (see Figure 1) to get the demand information they need for forecasting. A leader in this space is Terra Technology, which has landed several significant CPG brand companies such as Unilever, Campbell’s Soup and Coca-Cola, to name just a few. These firms have seen significant reductions of safety stock, and at the same time have improved delivery performance with the retailers!

Some companies are now updating the forecast daily, based on meaningful events, and every-one executes to the most current, accurate numbers, not to something agreed to months before, or created based on assumptions that are just not accurate. This requires new plan-ning systems that take into account not only standard patterns or algorithms, but also orders received yesterday. These algorithms must be sophisticated enough to understand that a for-ward buy does not indicate a surge in demand, for example. By rapidly adjusting forecasts based on orders and POS data, companies sig-nificantly increase the accuracy of their near-

term forecasts, stabilize production schedules, and deploy inventory much more rapidly and accurately to locations where there is actual demand.

COLLABORATION - CREATING A DYNAMIC AND MANAGEABLE TRADING NETWORK

Collaboration techniques have been around for a few years. But most approaches still rely on pushing dates back and forth through the layers of firewalls and systems. A newer ap-proach is a shared technology platform. This can be lead by an anchor firm or deployed as a multi-tenant environment, with a myriad of peers who work in an industry and frequently trade among themselves. Multi-tenant environments tend to be used in execution mode with the trading partners.

Creating what Sockeye Solutions calls a ‘Trading Circle’, a firm not only can rapidly create a shared environment, but can also use that environment for collaborative planning, replenish-ment etc. Another extremely high-value function is the capability to then propagate the agreements and rules created in the Trading Circles into the legacy environment, thus en-suring adherence to agreements. For example, a certain custom, product, channel or time frame can have a unique policy associated with it. Hewlett Packard has successfully imple-mented this approach, and their progress shines a light of what firms can accomplish.7

____________________________ 7 Read the Interview: HP’s Remarkable Collaboration Journey www.chainlinkresearch.com/research/detail.cfm?guid=4CC68683-CED6-36E3-BB8D-F87C0FF1BFB5



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BLENDING RFID DATA INTO THE DEMAND PROCESS Now, a major question that has plagued the computer industry from the beginning of digital time is – yes, we have all this wonderful logic, and algorithms, but what if the data going in is not accurate? Commonly known as ‘garbage in, garbage out’, this challenge can only be addressed by implementing superior data collection technology on the input side. Aggregat-ing and refining data are a necessary part of analysis, but they do not tell you what is actu-ally happening on the ground, at that moment. That is where RFID comes in. We are seeing RFID beginning to enter into the demand systems, as it already has with many other sys-tems, allowing finer tuning and a more real-time approach to managing true demand. One provider, aptly named TrueDemand Software, is tackling this problem, and they won’t be the only one. But young firms are the innovators, so let’s take a look at some of their contribu-tion.

TrueDemand, for example, has a pilot with Kimberly-Clark. Kimberly-Clark has a large cus-tomer base, and is therefore constantly parsing data signals from many of them simultane-ously. One of their major customers is Wal-Mart. Since Wal-Mart allows their suppliers to access data in Retail Link, Kimberly-Clark can pull down sales as well as RFID information, which they use to feed their Demand Planning systems and determine when and how to replenish supply to Wal-Mart.

Figure 2

Retail LinkWal-Mart

EPCISVeriSign

KCs Demand Management Solutions

KC’sDemandSignal

Repository

RFID Enabling of Demand Management

Zone of Security

DC POS

Firewall

•Inventory current location in the SC?•Inventory signals and status•Replenishment

Traditional Information Flows:•Orders•Promotions

Response:•Commitments•Adjustments•ASNs•etc

Multi-enterprisesVarious locations

Retail LinkWal-Mart

EPCISVeriSign

KCs Demand Management Solutions

KC’sDemandSignal

Repository

RFID Enabling of Demand Management

Zone of Security

DC POS

Firewall

•Inventory current location in the SC?•Inventory signals and status•Replenishment

Traditional Information Flows:•Orders•Promotions

Response:•Commitments•Adjustments•ASNs•etc

Multi-enterprisesVarious locations



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Outside Wal-Mart, firms can link to VeriSign and get a view of product in motion across the whole supply chain, before the shipment ever enters Wal-Mart territory. The key concept here is the ability to ultimately fine-tune their business through gathering and analyzing many more signals in the Demand Signal Repository. Knowing their product cycle times, the delivery chain timelines, and the location of inventories is key to their ability to sell through their channels (i.e. knowing if the inventory is still in the stock room or out on the floor) and knowing precisely when to build or ship product for timely replenishment. If you can get this right, the benefits are huge!

MIGRATING FROM TRANSACTION MANAGEMENT TO UNDERSTANDING EVENTS8

An additional factor in systems evolution is the migration from a transaction-oriented ap-proach (which fundamentally becomes history as soon as it occurs), to understanding ongo-ing events. This is one of the biggest changes to hit IT systems in a long time and still is not well-understood, although lots of technology providers lay claim to having this capability.

Events are those raw, messy, (technologists calls them asynchronous) occurrences, inci-dents and experiences that occur. They often occur more frequently than ordinary transac-tions. Demand Management is clearly the place to master an understanding of the full impact of these occurrences. A customer enters the store. Has your forecast accounted for this? Will the whole string of activities subsequent to this happy arrival be recorded, studied and blended into the knowledge base of your supply chain? The answer to these questions lies in process, data management, and implementing new archi-tectural solutions, such as inter-enterprise web, sensing, etc. 4th Dimensional technology is needed here.

Demand Management technology has for too long been the domain of ancient mathemati-cians like Fourier, Holt-Winters, etc. And their approach, I again must remind you, are at-tempts to take data and fashion into a pattern which may not match real life. But we talked about that already.

_____________________________________________________________________________________ 8 “Events” has two meanings in the Demand Management world. Here we mean asynchronous, or non-transactional activity in the business.



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SO, HOW DO I CAPTURE EVENTS? This is where inter-enterprise solutions come in. Web-based architectures are all the rage, (although not yet in the Demand Management sphere). Our systems need the capability to reach out across the supply chain, in real-time, to capture business data, and then publish it to individuals (as well as other systems) that can interpret and respond.

This is where a Viewlocity fills the bill. Architected on the web and designed to capture and propagate business events, Viewlocity can be a standalone solution (they have SCM mod-ules) or it can be integrated with other enterprise systems (like those that are mentioned here for rapid response).9

A ground-breaking approach is what another firm, VeriSign, supplies in supply chain man-agement. With their ability to capture RFID (and other data) and determine the right sub-scriber, this approach may enable a new world of business management activities. VeriSign already manages the Digital Naming Server (DNS), the EPC-IS10 server, as well as cell phone downloads and recently purchased Re-tail Solutions, Inc. (RSI), which integrates Point of Sales (POS) data. VeriSign becomes a key building block to create the Demand Sig-nal Repository.

__________________________________________________________________________________ 9 Kinaxis, Terra, even your other portfolio systems like i2, Manugistics, etc. 10 Read the article: Demystifying the EPC Global Network: An Explanation of ONS, EPC-IS, and EPC-DS www.chainlinkresearch.com/research/detail.cfm?guid=870D70E1-9E25-3141-B17E-E5DFE6AE2BAC



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Major Demand Planning Capabilities and Benefits Let’s face some facts on Demand Management. Forecasting mathematics does need mod-ernization. If you look at the legacy applications, you will realize that much of the mathemat-ics in use today was created by people who lived in the 17th century! Today you can get bet-ter mathematical theory on Numb3rs.11 And forecasting is the middle of the Demand Man-agement process—not the beginning! But let’s look at the major categories in a complete ‘solution’ before we jump into identifying the vendors who are most likely to provide these results.

DEMAND PLANNING CAPABILITIES

• Market Sensing - Demand Management needs to include a forward-looking Market Dis-

covery process. Today some of these capabilities exist as discrete functionality, and won’t be found in the forecasting packages. The approaches rely on modeling capabiliti-es12 that access broad data formats and information from many sources then translat-ing it into relevant business information. Today many firms subscribe to data and

_____________________________________________________________________________________ 11 Numbers is a ‘cop show’ on North American CBS Television 12 Read the article: The 4th Dimension www.chainlinkresearch.com/research/detail.cfm?guid=B54C8153-04FA-43BA-EC08-76F8F38495CC

Table 1 - Demand Planning Capabilities

Description/DefinitionDemand Management Technology Capabilities

Reaching accord, Team oriented assessmentConsensus Planning

Inter-enterprise planningCollaborative Planning

Team based evaluation of current ability to execute demand- usually in meeting format with Sales Marketing and Supply Chain

Sales and Operations Planning (S&OP)

The determination (planning) and execution of restocking Replenishment

Events can include new store opening, product launches, holidays etc.Event Planning

Set Goals, Assess and measure resultsMetrics/Analytics

Reporting and graphics packages, under driven and role based reporting and workflows

Reporting

Technology Architecture and its impact on problem solvingDemand Management Delivery Architecture

Determining Pricing, Managing Mark-downs etcPricing and Profit Optimization

Modeling, Codifying PredictionsForecasting

Planning, purchasing and displaying productsMerchandise Planning

Managing the demand, pricing etc through the life of the productLife Cycle Planning

Marketing/advertising and pricing campaignPromotion Planning

Managing UncertaintyRisk Management

Calculating the Value of Markets and ProductsTotal Market Demand/Investment/Revenue and ROI

Understanding MarketsMarket Sensing

Description/DefinitionDemand Management Technology Capabilities

Reaching accord, Team oriented assessmentConsensus Planning

Inter-enterprise planningCollaborative Planning

Team based evaluation of current ability to execute demand- usually in meeting format with Sales Marketing and Supply Chain

Sales and Operations Planning (S&OP)

The determination (planning) and execution of restocking Replenishment

Events can include new store opening, product launches, holidays etc.Event Planning

Set Goals, Assess and measure resultsMetrics/Analytics

Reporting and graphics packages, under driven and role based reporting and workflows

Reporting

Technology Architecture and its impact on problem solvingDemand Management Delivery Architecture

Determining Pricing, Managing Mark-downs etcPricing and Profit Optimization

Modeling, Codifying PredictionsForecasting

Planning, purchasing and displaying productsMerchandise Planning

Managing the demand, pricing etc through the life of the productLife Cycle Planning

Marketing/advertising and pricing campaignPromotion Planning

Managing UncertaintyRisk Management

Calculating the Value of Markets and ProductsTotal Market Demand/Investment/Revenue and ROI

Understanding MarketsMarket Sensing



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various market services that provide a myriad of demographic, economic, and statistical data13 that feed into the thought processes of firms who are contemplating market entry and new product lines. There are new approaches to these that use sensing and browsing technologies that high-light possibly undiscovered opportunities, as well as insights into known markets.

• The perspective is that there are distinct differ-ences between taking your data and providing models—that is analytics—vs. getting new infor-mation—that is market sensing.

• Total Market Value/ROI - Here we are talking about evaluating the business opportunity, not just the product revenue forecast, which is quite limiting. This analysis includes look-ing at life cycle, subsequent products in the family, probably total cost to serve (this is especially true in industrial, auto, high tech, etc.), as well as input from supply chain op-erations systems that tell you the costs associated with managing in that market (i.e. transportation and distribution costs; marketing programs and events; trade promotion dollars, and other exotic deals with channel partners to move product into the market) and the impact of competition and other risks. Consistently, the data shows that busi-nesses pursue markets and customer segments that ultimately have little potential; therefore formalizing this analysis process is critical.

• Promotion Planning - Although we are not good at these functions today, promotion management is a more traditional activity. And if you want to feel very far behind on your ability to do well at these, just looking at forecast accuracy and promotion perform-ance data ought to provide an impetus to improve your management of these. Although the theory is that they work (certainly on the psychological level, by bringing customers into the stores), huge dollars can be lost, not gained, in promotions.14 But for tangible payoff, strict coordination needs to occur. This means that the promotional management solutions need connectivity and visibility, and real-time event management to ensure that we are executing.

• Pricing - Definitely a treatise unto itself, pricing is an issue that is out of control in many supply chains. The inevitable markdowns, promotions, and cost to install (that was not part of the plan and now must be eaten by the manufacturer) all impact cost—and profit.

_____________________________________________________________________________________ 13 Examples like AC Nielsen, IRI… 14 That is why certain major chains do not do promotions, but rather subscribe to ‘every day low prices’



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Price solutions should go beyond elasticity models, with analysis of demographics, to determine what products should be offered in a given market, etc. Many firms have used these approaches very successfully to gain more profit. Data from Demand Man-agement15 customers actually showed that not marking down certain items increased profit with the same sales unit volume. Data from Manugistics customers showed that demographic analysis allows price stabilization and also increases profit.

• Event Management - Managing events is another area, in many cases, left to art rather than sys-tematic management. Events impact supply, cost, and price, and need to be managed with grace. An event can be a situation such as open-ing a new store, having a book signing, having a sports star show up to launch a new product, and other much more mundane occasions. Post event, the sales numbers can bias history num-bers; so closing the loop on this data (as well as other one-time activities or incidents) is critical for your next planning cycle.

• Life Cycle Planning - Products behave differently throughout their life cycle, with de-mand, pricing and supply variability that needs to be taken into account. Today, most firms use crude methods to create and assess life cycle patterns, and blend them into the process of forecasting, pricing, demand shaping, etc.

• Forecasting - If ever there was a time to look at the catalogue of products and seek out some new approaches, now would be the time. Even our evaluation template does not yet reflect the potential that exists in this arena, or some of the capabilities we are high-lighting in this treatise. Yes, you should have the arsenal of off-the-shelf formulas; but remember, these are often old models from bygone eras; and they are static, not reflect-ing your product market patterns. Newer approaches use intelligence, inference, rea-soning, and various modeling techniques to discover unique patterns that fit your supply chains and products. And no formula should override actual orders!

• Consensus Planning - Many departments in the firm are part of the planning process. But who really knows how to plan and get the game right? Many firms strive to drive the enterprise and the supply chain to a one-number forecast. This should be done through building consensus around an overarching marketing strategy. These tools allow you to work as a team to drive a consensus, based on the performance of the demand stream, or person who knows their stuff!

____________________________________________________

15 Demand Management is a software vendor featured in this report



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• Collaboration - This is another talked-about yet poorly practiced area. As we discussed earlier, creating an environment for true collaboration takes both technology and a cor-porate policy climate that values trading partners. Most technology companies have web-based tools, although they are transaction-based or practice shuttle diplomacy (moving data back and forth across firewalls, rather than having a shared platform). A true collaborative system provides those who need to share data with the tools (role based work flow tools, agents, etc.), a shared platform, and methods to adopt policy decisions that propagate only to the association.

• Merchandise Planning - What, where and how much? Not only is getting the right stuff into the retail channel important, but how and where it is presented is critical. We will talk much more about these capabilities in our retail report, but this is the area where the customer extends their hand to buy—whether through online clicks or through pull-ing merchandise off the shelf. The technological underpinnings are important in either case.

• Sales and Operations Planning - Of late, there has been a resurgence of S&OP soft-ware buying and process focus, building on an established foundation of good real-time production modeling, and managing upcoming demand. Discussion can occur on meet-ing this demand as well as burning off excess, or ‘demand shaping’. Virtually all compa-nies do some sort of demand shaping using price, promotions, and sales force incentives to shape demand to meet various goals, such as driving traffic to the retailer or selling off excess inventory.16 But few have figured how to use something other than price to steer demand towards available supply and higher margin products. The goal is to encourage salespeople and customers to select items that are in-stock and steer demand away from items in short supply. As a practice, demand shaping does not compensate for bad forecasting.17 And demand shaping and other promotions distort history data! They also lead to faulty replenish-ment practices, potentially driving replenish-ment orders to products with low or no true demand.

__________________________________________________________________________ 16 Dell is the master of this practice. 17 You cannot force the customer to buy something they don't want.



Page 16

• Replenishment Planning - Creating a policy between customer and supplier, monitoring and assessing the performance value of that policy, are all components of replenish-ment planning. This capability is much underrated in its technical value, even though it is used in daily practice. The software for replenishment planning has to be ‘smart,’ have a strong analytic component, and be as close to real time as possible, since there are lots of ‘false signals’ in the way things are bought and why they are bought. These practices vary greatly by industry, as well.

ARCHITECTURAL CONSIDERATIONS – THE DELIVERY ARCHITECTURE The architectural underpinning of these solutions is absolutely critical. Gone are the days when supply chain managers can leave the understanding of the technical constructs to the IT department. Significantly different results are attained, based on these approaches. For example, if you need to synthesize data from different functions or collaborate with trading partners to manage promotions, assess market risks, create collaborative forecasts with shared views of the markets, etc., then you need a web-based foundation. Advanced ana-lytics and algorithms require a memory-resident database for big number crunchers to grab

multiple demand streams, millions of SKUs, and big math equations, and come out with the answer now!

In addition, potentially different fund-ing mechanisms and value for your IT investments occur from these dif-ferent approaches.18 This report will not go into these topics; but there is significant data in the market on the various approaches, from “license software” to “on demand.”

__________________________________________ 18 Read the report: On Demand Now www.chainlinkresearch.com/research/detail.cfm?guid=492167FC-C119-AAB2-54AB-690A629C7DA2



Page 17

Solution Evaluation There are several key views from which to contemplate the technology offerings.

PROCESS VIEWS AND MAJOR POSITIONING Here we show a high-level summary based on the major supply chain capabilities that we discussed earlier—Primary Positioning. Most of these players generally do much more than this chart (table 2) shows. Enriching processes is the key focus in this view.

The key for buyers/end-users is to think about your entry point into the technology. In other words, what are you really trying to accomplish? As the supply chain solutions market grew through the late nineties, the trend moved from modules to suites. However, the subsequent learning was that many firms never used all the modules they bought from the suite, and therefore, in some cases, spent more money than they needed to on software. As we men-tioned earlier, some of these firms have designed their capabilities to complement or sup-plement a classic solution. So think about your needs, and look at Primary Positioning as a hint of what those firms may be bent on.

With that said, we will address some key points based on questions that we are consistently asked about the vendors:

• Domain Leaders, in spite of increased competition, are still a safe bet. General benefits are a deeper commitment to ROI for users, as well as more process support.

• Solutions need to have a strong architectural foundation, since today’s Demand Man-agement systems need strong underpinning.

Table 2

Demand Management Tools

Discover Create Grow Respond CollaborateAnalyze

•Sockeye

•Logility

•Manugistics

•Demantra•AspenTech

•Terra

•Acorn•DemandTec

•Demand Management

•SAP

•SAS

•TrueDemand

•i2

•Viewlocity

•Infor•JDA

•Kinaxis•Prescient

•Steelwedge•Vivecon

•Digital Tempus

•SSA•Management Science Assoc•Just Enough

•Adexa

Primary Positioning

Del

iver

y A

rchi

tect

ure

On-

Dem

and

Lice

nse

•VeriSign/POS Data Service

•AC Nielsen•Planalytics

•Netro City

•Experian•IRI

•Economy.com•MappingAnalytics

•Acxiom

Oracle

Demand Management Tools

Discover Create Grow Respond CollaborateAnalyzeDiscover Create Grow Respond CollaborateAnalyze

•Sockeye

•Logility

•Manugistics

•Demantra•AspenTech

•Terra

•Acorn•DemandTec

•Demand Management

•SAP

•SAS

•TrueDemand

•i2

•Viewlocity

•Infor•JDA

•Kinaxis•Prescient

•Steelwedge•Vivecon

•Digital Tempus

•SSA•Management Science Assoc•Just Enough

•Adexa

Primary Positioning

Del

iver

y A

rchi

tect

ure

On-

Dem

and

Lice

nse

•VeriSign/POS Data Service

•AC Nielsen•Planalytics

•Netro City

•Experian•IRI

•Economy.com•MappingAnalytics

•Acxiom

Oracle



Page 18

INDUSTRY VIEWS The best applications have rich functionality that supports your industry requirements. Most vendors invest significantly in a core industry or two, and ensure the depth necessary to master even the more nuanced problems associated with the industry.

Table 3 continues next page

Demand and Production Vendors

High-TechPLean Logistics

High-TechPDKinaxis

variousPJustEnough

High-TechPJRG

DJohn Galt

Consumer, RetailDJDA Software

Consumer, RetailDIRI

variousPIntentia

Process, Industrial, variousPDInfor

High-TechVisibilityPIndX/Siemens

variousOptimizationILOG

variousPIFS

Consumer, RetailPDi2

High-TechPFactory Logic

High-TechDEdge Dynamics

High-TechPDE2open

Consumer, RetailDDigital Tempus

variousPDemand Flow Technology

Consumer, RetailDDemantra

Consumer, RetailDDemand Management

Consumer, RetailDChurchill

Consumer, RetailPromotionBlue Martini

Process, ChemAspen Technology

Aerospace, Auto/IndustrialPApriso

High-TechPDAdexa

Consumer, RetailPricingAcorn Systems

Consumer, RetailDACNielsen

IndustriesOtherProductionDemandCompany

High-TechPLean Logistics

High-TechPDKinaxis

variousPJustEnough

High-TechPJRG

DJohn Galt

Consumer, RetailDJDA Software

Consumer, RetailDIRI

variousPIntentia

Process, Industrial, variousPDInfor

High-TechVisibilityPIndX/Siemens

variousOptimizationILOG

variousPIFS

Consumer, RetailPDi2

High-TechPFactory Logic

High-TechDEdge Dynamics

High-TechPDE2open

Consumer, RetailDDigital Tempus

variousPDemand Flow Technology

Consumer, RetailDDemantra

Consumer, RetailDDemand Management

Consumer, RetailDChurchill

Consumer, RetailPromotionBlue Martini

Process, ChemAspen Technology

Aerospace, Auto/IndustrialPApriso

High-TechPDAdexa

Consumer, RetailPricingAcorn Systems

Consumer, RetailDACNielsen




Page 19

continued Table 3

Cont. Demand and Production Vendors

Many of these vendors have many other capabilities in SCM. This chart just represents the orientation for this report.

High-TechOptimizationPLogicTools


Auto/IndustrialDVivecon

High-TechVisibilityViewlocity

Consumer, RetailDVeriSign

Consumer, RetailDTrueDemand

High-TechPTimogen

Consumer, RetailDTerra Technologies

Consumer, RetailAnalyticsT3Ci

Consumer, RetailOptimizationDToolsGroup

High-TechPDSteelwedge

variousP DSSA

High-TechDSockeye

High-TechOptimizationSmartOps

Consumer, RetailPDSAP

High-TechPRSS Solutions

High-TechVisibilityRiverOne

High-TechPQAD

Auto/IndustrialPDPrescient Applied

Intelligence

Consumer, RetailDPlanalytics

Auto/IndustrialPPelion Systems

Consumer, RetailPDOracle Corp

High-TechOptimizationOptiant

Consumer, RetailDOne Network

High-TechPMitrix

Consumer, RetailPDManugistics

Consumer, RetailDManhattan

Consumer, RetailPDLogility

High-TechOptimizationPLogicTools


Auto/IndustrialDVivecon

High-TechVisibilityViewlocity

Consumer, RetailDVeriSign

Consumer, RetailDTrueDemand

High-TechPTimogen

Consumer, RetailDTerra Technologies

Consumer, RetailAnalyticsT3Ci

Consumer, RetailOptimizationDToolsGroup

High-TechPDSteelwedge

variousP DSSA

High-TechDSockeye

High-TechOptimizationSmartOps

Consumer, RetailPDSAP

High-TechPRSS Solutions

High-TechVisibilityRiverOne

High-TechPQAD

Auto/IndustrialPDPrescient Applied

Intelligence

Consumer, RetailDPlanalytics

Auto/IndustrialPPelion Systems

Consumer, RetailPDOracle Corp

High-TechOptimizationOptiant

Consumer, RetailDOne Network

High-TechPMitrix

Consumer, RetailPDManugistics

Consumer, RetailDManhattan

Consumer, RetailPDLogility



Page 20

Table 4 - Demand Management Functionality Summary (Only the vendors who responded to our survey are featured here.)

Demand Mgt

Demantra

Digital Tempus

i2

Logility

Manu

Prescient

SAP

Steelwedge

Sockeye

Terra Technology

TrueDemand

Oracle 11i

Oracle/JDE

Oracle/People soft

Oracle/Retail (Retek/Profit Logic)

Vivecon

Promotion Planning

Promotion Planning

Pricing and Profit Optim

izationPricing and Profit O

ptimization

ForecastingForecasting

Forecasting Requirem

entsForecasting R

equirements

Forecasting Algorithm

sForecasting A

lgorithms

Risk and R

eal Options A

nalysisR

isk and Real O

ptions Analysis

Trend analysis, patternrecognition, rules creation


Merchandise Planning


Life Cycle Planning

Life Cycle Planning

Consensus Planning

Consensus Planning

Collaborative Planning


Sales and Operations Planning (S&

OP)


OP)

Replenishm

ent R

eplenishment

Event PlanningEvent Planning

Metrics and R

eportingM

etrics and Reporting

Metrics

Metrics

Reporting

Reporting

Dem

and Managem

entSystem

s Architecture

Dem

and Managem

entSystem

s Architecture

Web based/ SO

A foundation

for collaborative planningW

eb based/ SOA

foundation for collaborative planning

Hosted, collaborative sessions

for joint realtime

modeling


for joint realtime

modeling

Graphics package

Graphics package

Demand Mgt

Demantra

Digital Tempus

i2

Logility

Manu

Prescient

SAP

Steelwedge

Sockeye

Terra Technology

TrueDemand

Oracle 11i

Oracle/JDE

Oracle/People soft

Oracle/Retail (Retek/Profit Logic)

Vivecon

Promotion Planning

Promotion Planning

Pricing and Profit Optim

izationPricing and Profit O

ptimization

ForecastingForecasting

Forecasting Requirem

entsForecasting R

equirements

Forecasting Algorithm

sForecasting A

lgorithms

Risk and R

eal Options A

nalysisR

isk and Real O

ptions Analysis





Life Cycle Planning

Life Cycle Planning

Consensus Planning

Consensus Planning




OP)


OP)

Replenishm

ent R

eplenishment

Event PlanningEvent Planning

Metrics and R

eportingM

etrics and Reporting

Metrics

Metrics

Reporting

Reporting

Dem

and Managem

entSystem

s Architecture

Dem

and Managem

entSystem

s Architecture

Web based/ SO

A foundation

for collaborative planningW

eb based/ SOA

foundation for collaborative planning


for joint realtime

modeling


for joint realtime

modeling

Graphics package

Graphics package



Page 21

EVALUATING THE FUNCTIONALITY

When looking at Table 4, the first significant error that users can make is in assuming that there is a final score. The whole issue is the relevancy to what you want to accomplish. For example, if you are only looking for collaboration and replenishment capabilities (and you may already have a basic forecast package), then the rest of the chart is basically meaning-less. You need to know what you want to accomplish first, as a business, before you stroll down the path to purchase software.

This was the biggest mistake busi-nesses made in the late 90s and early 2000, which lead to the cynicism and shelfware that many firms have today. You really can’t blame the lack of busi-ness objectives, and therefore possible unfocused spending on the technology community. If I go to an apparel store in shoes with holes, but don’t think about what I really need, then come out with a shirt, it’s not the store’s fault!

Another key is that many firms have suites that may have some of the cate-gories, like a forecast package, and might think they have the issue covered. But the forecasting math just isn’t rele-vant to what you are trying to accomplish as a business. Examples, as we have discussed in this report, can be like using standard Holt Winters vs. evaluating your own history and demand, and creating unique patterns to plan demand; or looking at life cycle patterns, then applying these to your demand plans.

Another critical issue is the linkages. For example: creating a Promotion Plan, but then not integrating these to RFID data to see that the inventory to support the plan was actually placed in the store. Or checking to look at your short term demand—the current changes in orders, and altering the statistics static forecast to reflect the current demand. Many of these issues make the difference in real success, and generally require you to look at some of the ‘domain experts’ discussed in this report.



Page 22

Where will the Technology Go Next? BETTER DATA MANAGEMENT Ultimately, reducing errors is a factor of several fundamental precepts:

1. Being predictive in what markets require. If you don’t know what products are appropri-ate, you will never achieve an accurate demand number. Forecasts come later; under-standing markets comes first. So, we need more sensing technologies—more use of analog to digital conversion, such as analyzing traffic patterns in the store (or on the web) to understand what potential buyers are actually looking for, but can’t seem to find.

2. Data accuracy—meticulous data management—through strong analytics, and creating your own patterns based on the realities of your products and markets. This will mean using much more unique patterns rather than using standard patterns which actually increase errors.

3. A well-orchestrated process for managing demand in the enterprise or trading network. Work flows, rules based, personalized and culturalized.

4. Real-time or close to real-time monitoring and analytics to amend and repair demand plans that are just plain wrong—this will mean building on the responsiveness compo-nents we have today, using more collaborative platforms and creating rules with your trading partners within the system to help monitor accuracy.

5. Applications that will be in the web, not just on the web, vs. corporate license software approaches.

6. More data collection points—using RFID to monitor and then react to poor execution.

The net/net is the use of RFID rules based engines, and SOA/collaborative platforms form the foun-dation of improved data accuracy and notification systems to alert peo-ple of deviations from the expected—which happens all the time!



Page 23

MARKET SENSING / INFERENCE Looking at the data you already have is like breathing stale air. Technologies are available to support a true discovery process—browsing of the available universe. Firms like Netro City can seek out and create models of events, etc. High tech and telco firms already use these technologies to understand the significance of demographic and cultural patterns.

Leveraging solutions like Planalytics for weather patterns sensing and inferences on how weather will affect your demand.

DIGITIZING CUSTOMER BEHAVIOR RFID and sensor data, as well as analog to digital conversions will provide real-time item level inputs, gaining us access to events as they happen. As RFID be-comes more widely implemented, we will be able to move away from traditional data collection points, and onto the mer-chandise floor. Some interesting firms like Brickstream, IconNicholson, and Verint are already working in the con-sumer markets, analyzing complex streams of data.

Translating analog to digital data, they can see traffic patterns and address store displays, operations, and other aspects of the shopping experienced to improve flow, and to ulti-mately get the customer to the checkout.

Understanding the unique finger print—demand patterns—vs. relying on old patterns that probably don’t fit the behaviors of your markets with a firm like Digital Tempus.



Page 24

Conclusions

In spite of the fact that cynical spenders on technology look to supply chain optimization learning chains as the ROI, survey after sur-vey defines sales as the goal of business—getting customers to the cash register! In order to do this, we have to know our cus-tomer! We are at the beginning of these technology approaches.

With significantly increasing competition, firms need to continue to pursue absolute knowledge of their markets and cater to the evolving needs of their customers to stay ahead, or even in the game. Loss of promo-

tions vs. gains, mark downs, low inventory turns, weak sales, and a lack of readiness of your supplier to respond to your markets—all are signs of poor demand management prac-tices.

As the technology has evolved, more opportunities exist to constantly put more elements into the process to achieve ever increasing results. But, so many firms suffer from a lack of innovation and fresh approaches to meeting the next business cycle, that it seems more than warranted to put the toe in the water and try some new approaches—and get better at the basic disciplines.

Get started. Piloting is essential to learn, without the heavy pressure of critical implementa-tion deadlines.

But be fair—to your firm, as well as the vendor. Applying the right resources to see it through, as well as management attention to support a significant roll-out should be part of the plan. Today’s vendors just don’t have the vast resources—in people, or venture capi-tal—to whither away on uncommitted organizations who extend the sales cycle too long. It costs the small vendors too much on the sales cycle. And the users are just delaying their ROI !

Yet technology fascination can mask the creation of the basic disciplines to achieve the value proposition through:

• History - Demand history data collection and analysis is one of the most critical compo-nents of good demand management practices. Creating a process for collection of his-tory and clarity about ‘noise data’ vs. true demand.



Page 25

• Project Management planning and time management. It takes about a year or more to get in the groove of history, and more time to understand it. Project implementation by module takes about six months, so you must put in place proper expectation and man-agement support. Excitement tends to wane, and impatience increases in our instant world.

• Benefits/ROI - Benefits accrue over time, so set proper expectations on times to benefit. Hold yourself, not the vendor, accountable for returns. Base ROI on clear measurable operation data,19 but design the project to achieve strategic, transformational results.

• Change Management - Deal with issues of complexity—absorption of the technology, the process changes, etc.

Workers are not fond of change, necessarily. Not nearly enough effort or attention goes into dealing with coping with change. Firms fret over financial outlays for technology, yet gener-ally don’t attend to the needs of the people, who are the real source of value.

A NOTE TO DEVELOPERS Users are already suffering under the weight of increasing work loads, complex systems, and a general human tendency to do things the old way. The systems’ design—the process for implementation, the data management, and the operations of the system—has to signifi-cantly ease the users’ burden, and reduce their work load—not increase it. So, beyond do-main functionality, we must create tools for easing the work for the end-user.

Highest Benefits

0%20%40%60%80%

100%

Inventory

Cycle

Times

Custo

mer Delivery

Availab

ility

Operating

Exp

Series1

Inventory:•Turns•Working Capital•Obsolescence

Cycle Times:•Lead-times•Mfg- cycle times•Delivery times•Supplier Lead-times

Operating Expense:•Transportation•Carrying Costs

Availability:•Fill-rates•Reduced Stock-outs

Benefit Category Include:

Highest Benefits

0%20%40%60%80%

100%

Inventory

Cycle

Times

Custo

mer Delivery

Availab

ility

Operating

Exp

Series1

Inventory:•Turns•Working Capital•Obsolescence




Benefit Category Include:Inventory:•Turns•Working Capital•Obsolescence




Benefit Category Include:

__________________________________ 19 ChainLink Research has done several studies on Supply Chain project success.

Figure 3



FINAL THOUGHTS Over the last few years, it has been interesting to see some of the firms who worked hard, and ultimately masterfully at demand management improvements, achieving awards like Supplier of the Year, or achieving double digit growth in market share, revenues, etc.

These firms embrace change by demonstrating inquisitiveness, exploring new technologies and business concepts. They engage in partner dialogues to learn more about markets.

As Demand Management expands its footprint, it is time for supply chain managers to ex-plore the value of these new concepts, ensuring that the disciplines of data management are adhered to. Accurate history data that can be dissected to understand true business patterns—what is useful, but what is not—is critical, as market dynamics and products change.

Remember, we have no business at all, if we cannot master Demand Management!



Page 27

Appendix 1 - Further Readings

Title Abstract Author / Link

Report: The Truth About VMI

VMI best practices- Results of a survey, interviews and high tech industry working group recommendations. Adoption of VMI in the electronics supply chain, im-pact on performance and relationships, recommendations.

Bill McBeath

Report: APS Implementation Truths

Successful implementation results from Planning systems

Ann Grackin

Report: Demanding Times

Next Generation Demand Management Best Practices: Developing Market As-sumptions, Consensus planning and S&OP, Product Transitions, Consump-tion-based forecasting, N-tier demand management, POS Demand Shaping, Demand Risk Management, and De-mand Partitioning.

Bill McBeath

Article: Excess Inventory and Long-Term Stock Price Performance

An Empirical Analysis of the Effect of Supply Chain Disruptions on Operating Performance.

Vinod Singhal—College of Manage-ment, George Institute of Technology

Report: Single Version of the Truth: Sharing Data Across Multiple Enter-prises

Primary research in user expectations and adoption of data sharing enabled by RFID, SOA, etc.

Carla Reed, Bill McBeath, Ann Grackin

Report: Outbound Channel Management

Managing and Expanding Your Supply Chain Partnerships

Laura Faught

Report: Dynamics of the Re-tailer-Supplier Rela-tionship

Primary Research ChainLink Research 2004 Retail Survey

Bill McBeath

Report: Cooperation and Competition

Primary Research Survey Results: Retailer-Supplier Relationships

Bill McBeath

www.chainlinkresearch.com/research/detail.cfm?guid=D4068FE0-8004-6D99-1CA9-31204C44528F

www.chainlinkresearch.com/research/detail.cfm?guid=6C875EDD-6D57-44B0-8A1A-9BCEB1579C12

www.chainlinkresearch.com/research/detail.cfm?guid=D4072115-8004-6D99-1CAB-2FA16D712650

www.chainlinkresearch.com/parallaxview/v09/performance1.htm

www.chainlinkresearch.com/research/detail.cfm?guid=B0771F8E-90E4-6911-E9F6-E9DA8BC49B8E

www.chainlinkresearch.com/research/detail.cfm?guid=5312EB6C-0C7C-624F-6557-47ECD92B6A89

www.chainlinkresearch.com/research/detail.cfm?guid=D407B01A-8004-6D99-1CAA-F1904484959E

www.chainlinkresearch.com/research/detail.cfm?guid=F6F06550-A81A-4F05-EF17-F501BAD84E68



Page 28

Appendix 2 - Technology Firms Discussed in this Report

Vendor Page Website

Brickstream 23 www.brickstream.com

Coca-Cola 8 www.coca-cola.com

Demand Management 14 www.demandsolutions.com

Digital Tempus 5, 6, 23 www.digitaltempus.com

Hewlett Packard 8 www.hp.com

IconNicholson 23 www.iconnicholson.com

Kimberly-Clark 9 www.kimberly-clark.com

Manugistics 14 www.manugistics.com

Netro City 23 www.netrocity.com

Nissan 1 www.nissan-global.com

Planalytics 23 www.planalytics.com

Scotts 1 www.scotts.com

Sockeye Solutions 5, 8 www.sockeyesolutions.com

Terra Technology 5, 8 www.terratechnology.com

TrueDemand Software 9 www.tdemand.com

Unilever 8 www.unilever.com

Verint 23 www.verint.com

VeriSign 10, 11 www.verisign.com

Viewlocity 11 www.viewlocity.com

Vivecon 5, 6 www.vivecon.com



Harvard Square Center 124 Mount Auburn Street, Suite 200 N.

Cambridge, MA 02138 Tel: (617) 762-4040

Email: [email protected]. Website: www.clresearch.com

Documents

Demand Management Technology Evaluation€¦ · Demand Management techniques should include not only sensing the needs of the future, but understanding and assessing who your desired