Demand Planning Process & Concept Overview

Demand Planning Training

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Contents
Process Architecture Organization Overview of Demand Planning
Planning Dimensions Planning Roadmap Planning Elements Planning Horizon and Calendar Roles and Responsibility System Architecture

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Process Architectur e

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Nokia Process Architecture Top Level

CUSTOMER ENGAGEMENT processes define Nokia offering based on customer understanding and consumer needs; create and capture demand for Nokia brand and products; and manage customer interaction throughout the relationship lifecycle. PRODUCT processes manage product over the product lifecycle; plan, create and maintain platforms, products and systems; manage portfolios and architectures.

Customer Engagement

Management & Support

Product

Delivery

DELIVERY processes fulfill product and service orders; manage and execute solution implementation projects; support customers; plan and balance between demand and supply; and manage and optimize the delivery system structure.

MANAGEMENT processes define strategy, business portfolio and business models; and ensure implementation through common planning and follow-up processes in all levels of management.

SUPPORT processes deliver expert services and support for business processes.

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Nokia Process Architecture Delivery Process

Demand Supply Planning
Purpose: to plan the one set of numbers optimally balancing between demand and supply to reach business targets.

DEMAND FULFILLMENT
Purpose: to manage and fulfill the individual product or service orders and replenishments fast, efficiently and reliably according to the agreed logistics service offering.

CARE SERVICE
Purpose: to support the customers effectively and efficienty in using the products, solutions and services thus ensuring customer satisfaction.

DELIVERY SYSTEM MANAGEMENT

Purpose: to develop and implement the delivery systems, optimize the operational delivery system structure and manage the overall delivery system architecture.
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Demand Supply Planning Process Architecture

Demand Planning
to identify & analyse demand changes, align plans with customers, forecast potential future scenarios, and decide the sales plan & needed flexibility

Inventory & Channel Optimization

To manage and optimize inventories in the DSN and plan material (replenishment) flow for downstream logistics.

Demand Supply Balancing

to synchronize and balance demand against supply plan and identification of excess supply opportunities to optimise demand supply network performance, and NOKIA profitability.

Availability Confirmation
to confirm and communicate plan and allocate availability to sales, implement agreed production, distribution and material plans

Supply Capability Planning

to share latest material and capacity requirement and gather maximum capability from the DSN, identify capacity and material changes, agree realistic supply and capacity plan and provide risk & backup plan, decide material and capacity allocations

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Demand Planning
Demand Collaboration
Collaborating with customers to get better understanding of their future selling plans

Point-of-sale data, Channel sell-through, Customer plans

Demand Analysis and Forecasting

Market analysis (market size, product positioning, competitors ...) Demand forecasting (statistical forecasting of volumes, color splits ...)

Unconstrained Sales Volume Planning

Based on inputs from Demand collaboration, analysis and forecasting, consensus decisions are made about:
How many products Nokia anticipates to sell in each market and for which customers? What will be the product mix?

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Organization

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Nokia Top Level Organization

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Nokia Organization - Markets

Highlights:
- Sales, Marketing and Supply in same organization - Markets a separate common entity from product units: Devices and Software & Services - Sales & Operations headed by GEB member (Anssi Vanjoki is the Chairman of Global Demand Supply Balancing meeting)

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Nokia Organization Sales as of January 1, 2009

Sales Head HR, Legal, F&C, Comms Assistant

Sales Unit
MiddleEast and Africa South East Asia Pacific Greater China, Japan & Korea

Europe

Eurasia

Latin America

Brazil

India

North America

Retail

Operator Sales Operations Channel

Local SalesRussia Unit Nordic

France Benelux Turkey

Argentina Chile

Iran Levant Lower Gulf Near East Saudi & Yemen

Australia & NZ China Emerging Asia Taiwan Indonesia Hong Kong

India

North America

Vodafone Telefonica FT/Orange

South CIS Peru Ireland &UKUkraine Mexico Germany CARICAM Italy Iberia Central Alps & South-East Europe Columbia Venezuela

Indochina
Philippines

Korea

AMX
DT/TMobile CMCC Beyond Voice Growth operators

Singapore Area

North Africa

Thailand SSA/West & Central Africa SSA/East & Southern Africa SSA/Nigeria SSA/South Africa Pan MEA

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Nokia Organization Demand Supply Network Mgmt

Highlights: -Operations divided to two (Value and Volume) - Supply Logistics is mostly common teams (even if line mgmt is in Value or Volume) - Separate development organization (DSNS) - Material Management separate from Supply Logistics

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Demand Planning Dimensions

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Demand Planning Dimensions Seller Product Time

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Seller Dimension and Hierarchies

Level Description Nokia Nokia Selling Organization Selling Organization Sub Selling Organization Sales Area Sales Unit Sub Sales Unit Channel Account Sub Account
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Example Global NMP EURAF, AMERICAS, APAC

Sub Selling Organization

Sales Area
Sales Unit Sub Sales Unit Channel Account Sub Account

Refer to Sale Unit

Refer to Local Sales Unit

South East Asia Pacific

Singapore Area Singapore, Malaysia, Brunei Distributor, Operator A-mobile A-mobile

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Product Dimension and Hierarchies

Level Description All Prod Product Type Business Group Prod Line Source Predefined with default value Product Type field in PFA. Product Category field in PFA. Sub Product Category field in PFA Name, Model Name and Protocol fields in PFA BDW. Copy of PF level. Level created for future use. Product BDW/PDM 0041577 N6101 RM76 MALTA WHITE Examples All products Transceivers Connect, Live, Entry Classic, Comfort, Style, Entry Low 6100/1ARA/GSM/WC DMA 6100/1ARA/GSM/WC DMA

All Products Product Type Business Group Product Line Product Family Planning Product

Family

Planning Product

Product

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Time Dimension and Hierarchies

Level description
All Time Aggregation of all time buckets

Example
All Time

All Time
Year

Year Half Year

Half Year

This level would include the calendar (same as business) years. Altogether there would be 6 years modeled to i2 DM 2 years history, 1 working year and 3 forecast years. This level would include the business year Half This level would include the business quarters (four quarters in a year).

2007

1H 2007 Q1 2007

Quarter
Period

Quarter

Period

Week

This level corresponds to the NOKIA financial planning period. The periods follow 5-4-4 pattern except for the year where there is 53 weeks
Lowest level of time hierarchy.

P03 2007

Week

W12 P03 2007

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Planning Roadmap

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Sales Planning Roadmap & Planning Method

Ramp up period defined by GTM Ramp Down (EOL) period defined by GTM

PD3
1. Product Development phase
NO DEMAND PLANNING

GTM 4.5
3a. Mature phase Standard Mode STANDARD DEMAND DRIVEN PLANNING
Account / LSU Channel Bottom up with LSU, SU & Global adjustments

2. Ramp-up Phase TOP DOWN DEMAND PLANNING ACCORDING TO GTM GUIDANCE

Local Sales Units plan USVP according to Top Down Guidance. Upside request with Account Flex Sales Unit / Supply Planners maintain Uncertain ramp up plan.

4. Ramp-down (EOL) phase TOP DOWN DEMAND PLANNING ACCORDING TO GTM GUIDANCE
Local Sales Units plan USVP according to Top Down Guidance. Upside request with Account Flex SU Planners maintain EOL plan.

5. Ramped Down NO DEMAND PLANNING

Visibility still to channel inventory and sales (if exists)

3b. Mature phase Guaranteed Volume Mode FROZEN SUPPLY DRIVEN DEMAND PLANNING FOR C+5 PERIODS
SU commit c+5th period plan. frozen horizon c+5periods (demand balancing within fixed amount) Beyond frozen horizon demand driven planning

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Planning Elements

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Key Planning elements

Account Flexibility

MMC Uncertain Availability Uncertain Ramp up Plan Confirmed Nokia Demand Plan Sales Unit Local Sales Unit Sub Sales Unit Account Allocated Qty Supply Indication /Confirmatio n To Customer

Unconstraine d Customer Demand Plan

Unconstraine d Nokia Demand Plan incl. EOL plan

Sales Unit Local Sales Unit Sub Sales Unit Account

Confirmed Supply Plan CSP

Sales Unit Local Sales Unit Sub Sales Unit Account

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Key Planning Elements

Unconstrained Demand Plan
Unconstrained Non-Revenue & SWAP plan Global Requested Flexibility

Committed by sales Committed by supply Risk in sales Risk in supply

Manufacturing and Materials Capability (MMC) Plan

Unconstr SWAP & Non-Rev Req. Flex
Risk Production and Procurement Plan Confirmed Flexibility Plan

Confirmed Demand Plan

Uncertain Availability Confirmed Non-Revenue & SWAP Confirmed Flexibility Confirmed Global Management Adj

Unconstrained Global Management Adj

Unconstrained Local Sales Unit Management Adj Confirmed Production and Procurement Plan

Confirmed Local Sales Unit Management Adj

CSP CSVP
Confirmed Account Sales Volume plan

CDP

USVP
Unconstrained Account Sales Volume Plan

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Key Planning Elements

Important Note: In DMAN the row names to NOT match the current org which was put into place January 1

Todays Sales Unit = DMAN Sales Area Todays Local Sales Unit = DMAN Sales Unit
In the following slides the DMAN rows are left as they are stated in the tool. And therefore, may not directly align to the org structure
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Unconstr Account Sales Volume Plan

Customer Unconstrained Demand Plans
Plans received from customers are used as an input for Account USVP. Customer plans do not directly become Account plans but account manager/planner review is required
Planning Guidance (Roadmap, Fcst Prices, Market Size estimates) Ramp Up / Ramp Down Plans

Account USVP
Unconstrained sales volume plan that Accounts are planning and expected to sell. Unconstrained => no supply check yet After supply check & allocation Account USVP => Account CSVP Certain customers have to be planned on account level. In minimum: Operators belonging to Operator Nokia Sales Channel Online channel Certain independent distributors (Dangaard, Brightpoint, Carphone Warehouse) Other bottom up demand need to be planned in minimum on LSU channel level (i.e. as group of accounts under same channel) to Account USVP

Unconstr Account Sales Volume Plan Customer Sell Out Plan Customer Sell Through Plan Customer Purchase Plan

Note: Only Account plans (Account USVP & CSVP) will be reported to channel dimension
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Unconstr LSU Management Adjustment

Planning Guidance (Roadmap, Fcst Prices, Market Size estimates)

Unconstr LSU Management Adjustment

LSU Management Adjustment is used to adjust the total Local Sales Unit plan to realistic level in following cases: 1) If full visibility to product roadmap, price forecasts, deals is not given to account managers, and additional adjustment is needed beside of account base demand.
For additional deals not cascaded to account level or not communicated to account manager yet E.g., price change, operator deals, etc

LSU USVP
Unconstrained sales volume plan that Local Sales Unit is planning and expected to sell. Dman tool measures: SU USVP = Account USVP + SU Mgmt Adj. Upside Unconstr.

Ramp Up / Ramp Down Plans

LSU USVP
Unconstr LSU Management Adjustment

Local Sales Unit is expected to sell both account sales plan and local sales unit adjustments.

Unconstr Account Sales Volume Plan

2) If Account USVP is not aligned with LSU market size & share estimates, LSU head needs to make negative adjustments =>done together with accounts into account plan 3) Upside opportunities seen by LSU heads 4) To maintain frozen plan in GVM mode

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Unconstr Global Management Adjustment

Unconstr Global Management Adjustment SU USVP

Unconstr Global Management Adjustment

Global management adjustment is used to adjust the total sales plan to realistic level. -- In DMAN it is called SA Mgmt Adj Upside Unconstr In Monthly Process, GPO & SU will update SU Management Adjustment via two separate measures Channel (OC) Mgmt Adj and Channel (ID) Mgmt Adj, so that Operator channel and Independent distributor related adjustments can be reviewed separately Dman tool measures: SA Mgmt Adj Upside Unconstr = Channel (OC) Mgmt Adj + Channel (ID) Mgmt Adj In weekly process SU should update SU Management Adjustment directly if:
1) 2) LSU plan is not realistic, needs to be cut before plan goes to supply planning => to update Final SU USVP LSU plan has significantly increased /decreased and total demand plan is too high or too low =>SU to follow GPO planning guidance SP Split need to be maintained

Unconstr LSU Management Adjustment

Unconstr Account Sales Volume Plan

3)

Dman tool measures: SA USVP = (Final) Account USVP + (Final) SU Mgmt Adj Upside Unconstr + SA Mgmt Adj Upside Unconstr
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Requested Flexibility
Requested Flexibility
Unconstr Non Revenue units Plan Unconstr SWAP Plan Requested Flexibility Unconstr Global Management Adjustment

Req Flex is used for:

New product risk -> back-up plan Product mix uncertainty Potential deals Market opportunity

Req Flex is risk management plan and it contains certain uncertainties from Sales point of view. As supply will be prepared also for Req Flex, decision making is centralized to keep flexibility on sensible level from Nokia point of view In both monthly & weekly process Req Flex planning is done using two separate measures
GPO to update flex in Dman as Global Req Flex SU to update flex in Dman as Cluster Req Flex Dman tool measures: Req Flex = Global Req Flex + Cluster Req Flex In weekly process, SU need to update SP split planning for existing Req Flex

Unconstr LSU Management Adjustment

Unconstr Account Sales Volume Plan

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Account Flex Proposal

LSU USVP
Unconstr LSU Management Adjustment

Account Flex Proposal

In Ramp Up & Ramp Down phase Account /LSU should submit Account USVP/LSU USVP according to Top down guidance When Account/LSU real demand exceeds Top down guidance, Account /LSU can indicate exceeding demand in Account Flex proposal Account Flex Proposal is reference information for SU & GTM for next planning rounds when deciding new ramp up/ramp down allocations

Unconstr Account Sales Volume Plan

In Mature Phase
Account Flex Proposal

Usage of Account Flex proposal is optional

Account Flex proposal is indication of uncertain market opportunities and possibilities on account level
Account Flex Proposal is utilized when Req Flex plans created No supply confirmation, no directly driving supply capability building
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Ramp up Phase LSU USVP, Account Flex Proposal & Uncertain Ramp Up Plan
LSU USVP need to be maintained according to GTM top down guidance If real demand lower => LSU USVP can be lower than guidance If real demand higher => LSU USVP equal to guidance + Exceeding amount updated in Account Flex proposal

LSU USVP
Unconstr LSU Management Adjustment

Account Flex Proposal

Uncertain Ramp Up Plan

Uncertain Ramp Up Plan is updated by SU DnA /Supply Planners according to GTM top down guidance and known supply uncertainty Uncertain Ramp Up Plan is used as basis for supply planning. LSU USVP should be equal with or lower than Uncertain Ramp Up Plan if GTM guidance is followed and there is no supply uncertainty.

Unconstr Account Sales Volume Plan

Uncertain ramp up plan

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Ramp Down Phase LSU USVP, Account Flex Proposal & EOL Plan
LSU USVP according to GTM top down guidance If real demand lower => LSU USVP can be lower than Top down guidance If real demand higher => LSU USVP according the guidance + Exceeding amount updated in Account Flex proposal

LSU USVP
Unconstr LSU Management Adjustment

Account Flex Proposal

EOL Plan
EOL plan is updated by SU according to GTM top down guidance. SP Split can be copied from LSU USVP EOL plan is used as basis for supply planning.
EOL Plan

LSU USVP should equal with or lower than EOL plan if GTM guidance is followed.

Unconstr Account Sales Volume Plan

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Supporting Elements
In addition to key demand planning elements some additional data elements to be able to create realistic demand plan. These elements are called Supporting Data elements for Demand planning.

Some Examples
Fcst Price, Revenue plan Market Size, Market Share Channel Visibility information
Sell in: deliveries received by customer
Sell out: actual sales from customer to its customers Beginning Inventory: actual inventory in the beginning of reporting week/period Closing Inventory: actual inventory in the end of reporting week / period

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Supporting Elements - Revenue Plan

SA USVP
SU Management Adjustment

SA USVP Revenue
SU Management Adjustment Revenue
$

Revenue Plan
Revenue plan can be calculated by multiple volume plans with Fcst Price

* Fcst Price

LSU Management Adjustment

* LSU Fcst Price

LSU Management Adjustment Revenue

Fcst Price is maintained by SU based on information from GPO

Fcst Price will be copied to SU Fcst Price & Account Fcst Price, but SU/LSU can update SU Fcst Price/ Account Fcst Price for specific LSU/Account

Account USVP * Account Fcst Price Account USVP Revenue $

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Planning Horizon and Calendar

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Demand Supply Planning Horizons

week C+1
period C+3 DSP Plan Execution Short Term DSP

quarter c+4

Mid Term DSP

Short Term: Weekly buckets, C+2weeks to C+3 periods Mid Term: Period buckets, C+4 periods to C+4 quarters

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Market Forecasting Go to market & Transition Planning

Sales Planning Guidance Updates

Sales Planning Overview

Roadmap, Forecast Prices, Market Size Estimates, Volume Guidance, Ramp up & EOL plans

UNCONSTRAINED SALES PLANNING

Account USVP by channel Account CSVP by channel Account USVP

Account /LSU Channel Planning LSU Planning

Channel Planning

Operator Channel Mgmt Adj Allocation for Channel (when constraints)

Account CSVP Account Allocated Qty

LSU USVP (LSU Management Adjustment

SU USVP (SU Management Adjustment) + Req Flex + EOL Plan + Uncertain Ramp Up Plan

LSU CSVP LSU Allocated Qty

SU Planning

Global Planning

Global USVP + Global Req Flex

SALES PLAN CONFIRMATION AND ALLOCATION

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SU CSVP +Conf Flex SU Allocated Qty Confirmed Supply Planning

DSB

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Process cycle Mid Term periodical process

Mon Wk-1
Category PreTrapla Wk 2/Wed

Tue
Go to Market and transition planning Market Forecast Update
Global Trapla

Wed

Thu
SU GTM and Transition Planning
SU Trapla

Fri
Creation of top-down guidance
Top-down mid term sales plan guidance for C + 4Q

Supply Capability Review

Wk1

Local Sales Unit, Account/Channel Planning and Top Down Planning Global Supply Planning Scenario Analysis / Supply Capability Review
First Unconstrained Demand Plan

Wk2

Sales Unit / channel review

Unbalanced Supply Proposal based on First UDP Global MMC proposal for material analysis

Global channel top level review, adjustment proposals Preparation for sales planning meeting

Global Sales Planning Meeting Final Unconstrained Demand Plan

Global material planning & Global supply balancing & capacity analysis

Wk3

Updated Supply Proposal based on Final UDP

Material confirmation

Global Supply Planning Meeting Global Balancing Meeting (Preparation)

Global Balancing Meeting (Final)

Mid-Term Demand plan confirmation and allocation Confirmed supply plan implementation
Final MRE plan ready Sales LE ready

Global Supply Planning

Wk4

Publication of agreed plan All-in-One report Confirmation to sales 1st MRE explosion

Syncro updated with latest confirmed plan

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Demand Planning

Supply Planning

Key Process Meetings

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4th/5th Week APAC EMEA AMER Mon Mon Mon 11:30 EET 18:30 EET Fri Fri Fri

1st Week Sat MonSat MonSat Mon02:30 EET 21:59 EET Fri Fri Fri

2nd Week
SU Deadline + full Archiving

Sat 02:59 Friday EET Sat 08:59 Friday EET

23:00 Tue EET 07:00 Tue EET 2nd

Wed

Global Planning Office Local Sales Unit:

Previous LE

17:00 EET

Sat Friday

21:00 EET

Tue

Outputs from Monthly Unconstrained Demand Planning in Chaplin

Previous LE Monthly

Account USVP SU Mgmt Adj Upside Unconstr. Channel (OC) Mgmt Adj Proposal=Previous LE -Acount USVP Monthly

Account USVP Monthly 23:59 Sales Unit local times SU Mgmt Adj Upside Unconstr. Monthly Final Account USVP Final Account USVP Monthly Final SU Mgmt Adj Upside Unconstr Monthly

Final SU Mgmt Adj Upside Unconstr

Sales Unit

Channel (OC) Mgmt Adj Channel (ID) Mgmt Adj

Channel (OC) Mgmt Adj Monthly Channel (ID) Mgmt Adj Monthly

SA Mgmt Adj Upside Unconstr Proposal=Channel (OC) Mgmt Adj + Channel (ID) Mgmt Adj

Note: 2nd Tue deadline is for SU submission + full Archiving for Channel (OC) Mgmt Adj Channel (ID ) Mgmt Adj
SA Mgmt Adj Upside Unconstr. SA Mgmt Adj Upside Unconstr. Monthly

Cluster Req Flex

Cluster Req Flex.

Cluster Req Flex. Monthly

Global Planning Office Legend:

Input measure in DM Model (real time calculation) measure in DM, not editable Latest plans (archived), not editable measures in DM xxx DM Deadlines xxx Process Deadlines Refresh CR20: Training Material

Global Req Flex. Req Flex (comp)= Cluster Req Flex + Global Req Flex Req Flex

Global Req Flex. Monthly

Req Flex Monthly

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2nd week

3rd week MonWed MonWed MonWed Thursday Thursday Friday 18:30 Friday 18:30 Thursday Friday 18:30
CSP

4th / 5th week SatSun SatSun SatSun Mon Mon Tue-Thu Tue-Thu Fri 18:30 Fri 18:30 Mon Tue-Thu Fri 18:30

APAC EMEA AMER Sales Unit, Local Sales Unit, Account Planning

Fri 18:30 Fri 18:30 Fri 18:30

Monthly CDP Flag (MEBU only)

Outputs from Monthly Confirmed Demand Planning

CSP Flex

Conf SU Mgmt Adj Upside Monthly Proposal Account CSVP Monthly Proposal SU CSVP Monthly Proposal =

Conf SU Mgmt Adj Upside Monthly Account CSVP Monthly SU CSVP Monthly = Account CSVP Monthly + Conf SU Mgmt Adj Up Monthly Conf SA Mgmt Adj Upside Monthly SA CSVP Monthly = SU CSVP Monthly + Conf SA Mgmt Adj Upside Monthly Conf Flex Monthly Conf SWAP Plan Monthly Conf Non Rev Units Plan Monthly CDP SA CSVP Monthly + Conf Flex Monthly + Conf SWAP Plan Monthly + Conf Non Rev Units Plan CSP Monthly CSP Flex Monthly CSP SWAP Monthly

CSP SWAP

18:00 EET

Account CSVP Monthly Proposal + Conf SU Mgmt Adj Up Monthly Proposal Conf Channel (OC) Mgmt Adj Conf Channel (ID) Mgmt Adj Monthly Proposal Monthly Proposal Conf SA Mgmt Adj Upside Monthly Proposal
SA CSVP Monthly Proposal = SU CSVP Monthly Proposal + Conf SA Mgmt Adj Upside Monthly Proposal

Legend:
Input measure in DM Model (real time calculation) measure in DM, not editable

Conf Flex Monthly Proposal Conf SWAP Plan Monthly Proposal Conf Non Rev Units Plan Monthly Proposal

Conf Cluster Flex Monthly Proposal

Conf Global Flex Monthly Proposal

Latest plans (archived), not editable measures in DM

Reference data, not in DM
xx

Confirmed Demand Plan Monthly Proposal SA CSVP Monthly Proposal + Conf Flex Monthly Proposal + Conf SWAP Plan Monthly Proposal + Conf Non Rev Units Plan Proposal CSP (edit) CSP Flex (edit)

DM Deadlines

CSP SWAP (edit)

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Process cycle Short Term weekly process

Week-1 (Wed) Weekly Transition/ Go-to-Market Planning Mon-Tue Local Sales Unit, Account/ Channel Planning Wed Thu-Fri

Maintain Demand Picture

Creation of Sales Planning TopDown Guidance Global Adjustments and Flexibility Planning Demand Supply Balancing Supplier Collaboration Material Review and Allocation Constraint Review Meeting

Short-Term Demand Plan Confirmation

Maintain Supply Picture

Capacity Review and Allocation
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Supplier Collaboration

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APAC EMEA AMER

Friday Friday Friday

Tuesday Tuesday

06:00 EET 14:00 EET

Tuesday Tuesday

15:00 EET 18:30 EET

Outputs from Weekly Unconstrained Demand Planning for Chaplin

Tuesday

07:00 EET
Dead line agreed in Sales unit

Tuesday

23:00 EET
Global Req Flex Weekly

Global Planning Office: Local Sales Unit: Account

Global Req Flex

Acct Flex Proposal Account USVP

Account USVP Weekly SU Mgmt Adj Upside Unconstr. Weekly SU USVP Weekly = Cop y Final Account USVP Final SU Mgmt Adj Up Unconstr. Acct USVP Wkly + SU Mgmt Upside Unconstr. Wkly

Local Sales Unit

SU Mgmt Adj Up Unconstr.

SU USVP = Account USVP + SU Mgmt Adj Up Unconstr.

Sales Unit

Final Account USVP Weekly Final SU Mgmt Adj Up Unconstr. Weekly

SA Mgmt Adj Up Unconstr.

SA Mgmt Adj Upside Unconstr. Weekly Cluster Req Flex Weekly

Cluster Req Flex

Legend:
Input measure in DM
Model (real time calculation) measure in DM, not editable

Req Flex (comp)=

Cluster Req Flex + Global Rex Flex Req Flex Weekly

Req Flex
SWAP Plan Unconstr. Non Rev Units Plan Unconstr. EOL Plan Short-term Horizon EOL Plan Weekly Unconstr. Demand Plan Weekly = If PLC=2 (or 1): SA USVP + Req Flex +SWAP Plan Unconstr.+Non Rev Units Plan Unconstr. OR If PLC=7: EOL Plan) Company Confidential SWAP Unconstr. Weekly Non Rev Units Plan Unconstr. Weekly

DM Deadlines
Latest plans (archived), not editable measures in DM xxx xxx

DM Deadlines Process Deadlines Refresh CR20: Training Material

ST Confirmed Demand Planning Dman Measures Outputs from Weekly

APAC
Daily Daily Daily Friday Friday 18:30

EMEA AMER LSU/ Account Planning LSU Planning

Confirmed Demand Planning

18:30 18:30
Account CSVP Weekly

Friday

Account CSVP Daily

Conf SU Mgmt Adj Upside Daily SU CSVP Daily =

Conf SU Mgmt Adj Upside Weekly SU CSVP Weekly = Acct CSVP Weekly + Conf SU Mgmt Upside Weekly Conf SA Mgmt Adj Upside Weekly SA CSVP Weekly = SU CSVP Weekly + Conf SA Mgmt Upside Weekly Conf Flex Weekly Conf Cluster Flex Weekly Conf Global Flex Weekly

Acct CSVP Daily+ Conf SU Mgmt Upside Daily

SU/ Global Planning

Conf SA Mgmt Adj Upside Daily SA CSVP Daily = SU CSVP Daily + Conf SA Mgmt Adj Upside Daily Conf Flex Daily

Conf SWAP Plan Daily Conf Non Rev Units Plan Daily CDP Daily =

Conf SWAP Weekly Conf Non Rev Units Plan Weekly CDP Weekly = SA CSVP weekly+ Conf Flex Weekly + Conf SWAP Weekly + Conf Non Rev Units Plan Weekly

Legend:

SA CSVP Daily + Conf Flex Daily + Conf SWAP Daily + Conf Non Rev Units Plan Daily

Latest plans from APO DP, not editable in DM DM Deadlines Model (real time calculation) measure in DM, not editable
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xxx
DM Deadlines

not editable measures in DM

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Roles and Responsibilitie s

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Key Roles in Demand Planning Global Planning

Global GTM Markets Sales Management
Sets targets for sales volume planning Decides priorities when constraints Decides Management adjustments & flexibilities Leads Global Transition Planning and Ramp Up & Ramp Down Volume Planning

Global Planning Office

Leads global demand planning monthly and weekly process.
Ensures good quality of sales plans via planning guidance to Sales Unit Updated Fcst prices, market size estimates, Global management adjustment & Global Req Flex in DMAN

Global Channels
Review of Local Sales Unit plans from channel dimension Provide management adjustment & flexibility proposals to GPO from channel dimension where needed Participate in Global Sales planning meetings and decision making

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Key Roles in Demand Planning Sales Unit & Local Sales Unit Planning
Sales Unit
Ensures good quality of Sales Unit sales plans via planning guidance and coaching the Local Sales Units in planning Update PLC, Activate PF & SPs for SU planning

Sales Unit GTM

Leads Transition Planning and Ramp Up & Ramp Down Volume Planning in Sales Unit

Review of Local Sales Unit plans

Update SU Management Adjustment (Channel (ID) Mgmt Adj) & SU Req Flex in monthly process Update SU Management Adjustment & SU Req Flex in weekly process when sanity check requires Maintain SP Split for SU Management Adjustment & Req Flex in weekly process Ensure EOL planning according to GTM Guidance Ensure Uncertain ramp up planning according to GTM guidance Update CDP & Allocations for Local Sales Units in APO

Local Sales Units

Ensure good quality Local sales unit plan according to planning guidance USVP planning on account / LSU channel level Ramp up & EOL plan implementation to SU USVP Weekly sales plan confirmation and allocation on account /LSU channel level according to global guidance Sales plan execution

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Local Sales Unit Planning Roles & Responsibilities Position Role & Responsibility
Local Sales Unit Head Accountable / owner of the Local Sales Unit sales plan
Decides the level of management adjustment Ensures that LSU USVP is on realistic level Decides Allocations to Sub Sales Units and Accounts according to Global & SU guidance Ensures sales execution in Sales Unit according to plan

Account Manager Business Controller

Accountable/ owner /preparation of the account level sales volume plans

Decides Account USVP and Ensures that is it on realistic level Ensure sales execution on Account level according to plan

Responsible of the weekly & monthly sales planning process

Responsible for LSU business plans solidity in weekly and monthly horizon Supports Local Sales Unit Head in Adjustment & Allocation decisions and SU USVP sanity check against market size Responsible to agree exact roles & responsibilities and communication flow with Local Sales Unit Logistics

Logistics Manager

Facilitator of the weekly & monthly sales volume planning

Systematical analysis of the latest volume plan quality and coverage Represent Logistics view in Local Sales Unit Sales Planning meetings and decision making Responsible to agree exact roles & resp. and communication flow with Local Sales Unit Business Controlling

Sales / Logistics Planners

Supports Account manager in customer collaboration and sales planning

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System Architecture

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Application and process areas in scope of the Planning Solution IT product

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DMAN 3.0 High-level System Architecture and Data Flows - Transceiver

Unconstr . Demand Plan, Uncertain Ramp-up plan SPSplit

MP i2 SCP
Global Engine Planning

Monthly Unconstr . & Monthly Conf. Demand Plan

R/3 CCPE S&S

Selling Org hierarchy maintenance UI (BDW) Demand Activationand PLCmaintenance UI (BDW) PFA UI

Orders Invoices Confirmed Demand Plan Customer Plan, Channel data

DMAN i2 DM

Unconstrained Demand Plan, STPTarget Vol, Monthly CSVP, Acct USVP

SAP APO/DP PRS

Repl. Planning

Selling Organizations

Monthly Confirmed Demand Plan, Price

Activations , PLC Acct USVP/SU USVP Upper Prod Hierarchy , PF descriptions (model , protocol ) Sales Pack codes and descriptions Several data elements for reporting

CV Acct Coverage

PDM/BDW

AIO, IMR MT Excel

RDW

BO reports VR DMAN

Refresh CR20: Training Material

Company Confidential

DMAN 3.0 High-level System Architecture and Data Flows - Gear

R/3

Orders Invoices

DMAN i2 DM
Selling Org hierarchy maintenance UI (BDW) Demand Planning and PLCmaintenance UI (BDW) PFA UI Selling Organizations

Monthly Confirmed Demand Plan, Price

PRS

Activations , PLC

Upper Prod Hierarchy, PF descriptions (model , protocol ) SalesPack codes and descriptions Several data elements for reporting

PDM/BDW

AIO, IMR MT Excel

RDW

BO reports VR DMAN

Refresh CR20: Training Material

Company Confidential