SAS Demand Intelligence

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1 SAS Demand Intelligence Udo Sglavo Product Manager Demand Intelligence SAS EMEA -1-

2 Agenda! Demand Intelligence Introduction! Demand SAS! Customer Case Study -2-

3 "Now more than ever, manufacturers need data integration and analytics across the supply chain, and flexibility to implement new business processes, to quickly define and implement strategic improvements" Michael Burkett, AMR Research A Slow Economy is the Time for Manufacturing Improvements -3-

4 SAS Supply Chain Intelligence SCOR Metrics Activity Based Management Value Chain Analytics Supplier Relationship Management Demand Intelligence Process Intelligence Warranty Solution -4-

5 SAS Demand Intelligence! Getting the right product! To the right place/customer! At the right time! At the right price/promotion -5-

6 The Challenge! Unaligned business planning processes! Dispersed, multiple data sources! Lack of common view of historical data! Lack of relevant business intelligence reports! Inadequate analytical methodology forecasting and demand modeling replenishment policy optimization pricing and promotion optimization -6-

7 Forecasting and Optimization Are Complex Come on! It can t go wrong every time

8 Agenda! Demand Intelligence Introduction! Demand SAS! Customer Case Study -8-

9 Business Intelligence & Key Performance Indicators Multiple Data Sources SAS Demand Intelligence Solutions Demand Planning KPI Monitoring and Reporting Price and Promotions Planning Internal Collaboration SAS Intelligence Architecture Replenishment Planning Analytical Methodology Aligned Business Planning Processes Common View of Historical Data Execution System Distribution Planning Company Metadata External Data Sources -9-

10 Demand Intelligence Solutions Development! Initial industry focus Retailers Manufacturers - Consumer Packaged Goods! Development platform: SAS 9-10-

11 Demand Intelligence Analytical Foundation! Forecasting: SAS/ETS (SAS 8) SAS High-Performance Forecasting (SAS 8)! Optimization: SAS/OR (SAS 8) SAS Inventory Replenishment Planning (SAS 8 experimental)! Statistical Modeling: SAS/STAT (SAS 8) -11-

12 Institute of Business Forecasting Survey, Fall

13 -13-

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15 -15-

16 -16-

17 Agenda! Demand Intelligence Introduction! Demand SAS! Customer Case Study -17-

18 Lubrizol! Additives, services for engine fluids! ~$2 billion annual revenue! 2,000 customers in 100 countries -18-

19 Business Problems! Lost revenues! Decrease in productivity! Decrease in operational efficiency -19-

20 Challenges! Customers, offices, products in 100 countries! 30,000 unique model situations monthly! Summarizing intelligence into simple reports -20-

21 SAS Software Implemented SAS Excel Access Information Store Forecasting Filtering Account Management You ve Got Sales SAP Reporting Web Reports ETL Analytic Intelligence Business Intelligence SAS/ACCESS Products SAS/Connect SAS/ETS Forecasting SAS/Stat Analysis & business rules SAS/IntrNet SAS/Graph -21-

22 Results Using SAS! More-than-doubled forecast accuracy! $200,000 savings per 1% variance improvement! Impossible forecasts now ready in minutes! Customers notice the improvements -22-

23 Results Using SAS Our account managers are starting to use the summaries and graphics to talk with our customers about what the future holds, which is something we couldn't do very easily before SAS" -- Robert Wojewodka, Operations Technology Manager, Lubrizol -23-

24 Summary! New initiative: Supply Chain Intelligence! New solution: Demand Intelligence (SAS 9) Demand Planning Replenishment Planning Price/Promotions Planning! Analytical foundation available today -24-

25 -25-

26 Demand Demo booth (Wednesday) Solutions Forum 1 Exhibition Hall X! Paper: Demand-Driven Strategies For Increased Profitability: SAS Demand Intelligence (Part 1) Wednesday, 16:50 SCI and Financial Solutions Forum, Hall X Demand-Driven Strategies For Increased Profitability: SAS Demand Intelligence (Part 2) Thursday, 14:15 Analytical Techniques for SCI, Room C -26-

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