Demand Planner Benchmark Survey 2013
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1 Demand Planner Benchmark Survey 2013 Current Practices and Results 2013 Demand Planner Benchmark Study
2 Background In late summer of 2013, SCDigest launched a web survey around the current roles, practices and result focused on the critical subject of the demand planner in organizations a very under-studied topic, in our view. We received more than 300 submissions from around the world. Roughly 70% were from the US and Canada, 25% from and a few other developed economies (Australia, South Africa) and about 5% from developing economics, from China to Peru. In most cases, we break out the results separately for the US (including Canada) and (including as noted those few other developed countries), although it turns out in general that the results between the two regions are quite similar. Because the sample size from the developing regions is so small and disparate, we only include the results there for a couple of questions where that data seems most beneficial to display. We are confident you will find this data most interesting, and that it will serve as a source of discussion within your organizations as you compare your practices with those of others. The data is primarily just reported as is, without a lot of commentary. Participating companies in the study came from many industries, and included: Graybar Electric Tenneco Automotive Delhaize America IBM Tyco International General Mills Ferguson Enterprises, L'Oreal Canada Mizkan Americas Dole Fresh Vegetables, US Diagnostics Energizer Holdings HEB Johnson & Johnson Ames True Temper Lord Corporation Nike Univar USA Hershey Company, Boise Inc. Integra LifeSciences Marchon Eyewear Lennox Industries Insight Beverages Ranbaxy Pharma Alcatel-Lucent Molex Dr Pepper Delphi Ace Hardware L'Oreal USA Avery Dennison Nalco Pacific Natural Foods Broan-NuTone Novozymes Imation 3M Clorox Michaels Stores Mark Anthony Brands Alcatel-Lucent Total Wine Berry Plastics Central Garden & Pet Jack Gips Sesame Company The Dannon Co. AkzoNobel Colgate-Palmolive Tractor Supply Co. Henkel Altera Goodyear Dell Novartis OTC CPChem Western Power Union Pacific Railroad Dupont 2013 Demand Planner Benchmark Study 2
3 Respondent Demographics Answering for a full company or division/sbu? Company 46.5% 52.7% Division 53.5% 47.3% Number of ship From locations: Average Median 9 5 Low 1 1 Survey Results Demand planner career path: Other Stepping stone position on path to other more senior roles in supply chain or finance Position in which a career path can be built within demand planning/ S&OP: 52.0% 52.6% 68.0% 30.9% 32.6% 24.0% Other 17.1% 14.7% 8.0% 2013 Demand Planner Benchmark Study 3
4 What is your typical hiring profile for a new demand planner? High source % of new hires (in other words, 1.5% of US/Canadian companies rely on new college grads for % for new demand planners) Entry level/recent college grad position Transfer from elsewhere in company 1.5% 0.00% 7.52% 3.80% A few years of experience 3.01% 6.30% Significant experience 5.26% 1.30% Strong source % of new hires: Entry level/recent college grad position Transfer from elsewhere in company 9.00% 11.30% 24.80% 22.50% A few years of experience 21.80% 18.80% Significant experience 15.80% 13.80% Modest source % of new hires: Entry level/recent college grad position 15.80% 33.80% Transfer from elsewhere in company 38.30% 43.80% A few years of experience 39.80% 43.80% Significant experience 23.30% 31.30% Low source % of new hires: Entry level/recent college grad position 73.70% 55.00% Transfer from elsewhere in company 29.30% 30.00% A few years of experience 35.30% 31.30% Significant experience 55.60% 53.80% 2013 Demand Planner Benchmark Study 4
5 Rank in Order from 1-5, with 1 being the most important and 5 the least important, the following skills in a demand planner. (The results represent the average score for each attribute.) Ability to work with customers, sales and channels to understand the demand signal Understand requirements in various parts of organization (marketing, sales, manufacturing, logistics, finance) Ability to communicate across the organization Deep math and statistical skills Ability to build and socialize a consensus Does your company have differentiated positions within the demand panning group, such as those that focus on the quantitative tasks and others that are more business oriented? Yes 27.8% 27.5% No 62.4% 68.8% Sort Of 9.8% 1.3% 2013 Demand Planner Benchmark Study 5
6 On a Scale of 1-7, how important is the role of a demand planner Viewed within your organization? High 22.6% 23.8% Medium 67.7% 62.5% Low 9.8% 13.8% How would you describe your level of turnover in demand planning positions? Low/light 52.0% 46.7% Medium 41.6% 37.3% Heavy 6.4% 16.0% Is turnover more related to internal promotions/movements or demand planners leaving the company? Internal 42.1% 37.5% Leave Company 25.6% 28.8% Mix 22.6% 27.5% Other 9.8% 6.3% 2013 Demand Planner Benchmark Study 6
7 How many demand planners does your company/division have? Average Highest Median 5 3 At what levels do you currently forecast? (Check all that Apply) At the Region-Product Level Only 11.5% 23.0% At the Ship From Distribution Center Level Only 21.2% 21.6% At the Ship To Level (such as at a Customer Warehouse) Only 13.3% 12.2% Region and Ship From 11.5% 8.1% Region and Ship To 8.8% 9.5% Ship from and Ship to 2.7% 5.4% All three 18.6% 14.9% Other 12.4% 5.4% 2013 Demand Planner Benchmark Study 7
8 What is the primary way you measure a demand planner s work load? (Demand Forecasting Unit/DFU) At the Region-Product Level 35.8% 32.0% At the Ship From Distribution Center Level 21.7% 33.3% At the Ship To Level (such as at a Customer Warehouse) 13.3% 17.3% At the Store-Level 5.0% 4.0% Other 24.2% 13.3% On average, about how many of those DFUs do your demand planners manage? At the region-product level Average Mean Smallest Largest Demand Planner Benchmark Study 8
9 On average, about how many of those DFUs do your demand planners manage? (continued) At the Ship From Distribution Center Level Average Mean Smallest Largest At the Ship to Level (such as at a Customer Warehouse) Average Mean Smallest Largest Over the past few years, that number has: Stayed about the same 44.8% 38.2% Risen Modestly 35.2% 43.4% Risen Sharply 8.0% 11.8% Dropped Slightly 12.0% 6.6% Dropped Sharply 0.0% 0.0% 2013 Demand Planner Benchmark Study 9
10 Is demand planning paired with any other roles? Yes, with Replenishment Planning 16.9% 12.1% Yes, with Supply/Inventory Planning 33.1% 30.3% No 38.7% 34.8% Yes, with Other 11.3% 22.7% What is a typical of salary for a new demand planner in your organization (in US Dollars) Highest $110,000 $110,000 Average $45,010 $46,694 Median $60,000 $40,000 Lowest $30,000 $25,000 Here is another view of that same data: $25,000-40, % 50.8% $40,001-50, % 21.3% $50,001-60, % 11.5% $ , % 6.6% $ % 3.3% Over $85, % 6.6% 2013 Demand Planner Benchmark Study 10
11 What is the approximate pay range for a senior demand planner in your organization? Widest Range $95, ,000 $90, ,000 Average High End $79,214 $73,360 Lowest High $50,000 $44,000 Median High $85,000 $65,000 Highest High $150,000 $160,000 Average Low End $48,750 $42,400 Median Low $65,000 $50,000 How would you rate your company s overall demand planning/forecasting capabilities/results? Other Below Average 20.3% 17.1% 13.6% Average 44.9% 44.3% 63.6% Above average 29.7% 28.6% 13.6% Excellent 5.1% 10.0% 9.1% 2013 Demand Planner Benchmark Study 11
12 Where does the demand planning group report? Supply Chain Planning Dept. 39.2% 28.9% Head of Supply Chain 23.3% 22.4% Head of Operations 7.5% 10.5% Head of Logistics 3.3% 6.6% Finance 2.5% 3.9% Marketing/Sales 14.2% 15.8% Other 10.0% 11.8% How would you describe your current staffing levels in demand planning? US/cCAN Other Too few - we're really stretched 45.8% 40.6% 43.5% About right 50.8% 55.1% 56.5% Too many/ overstaffed 3.3% 4.3% 0.0% That s it for this year s benchmark study. Thanks to all who participated. Please see Sponsor information on the next page Demand Planner Benchmark Study 12
13 2013 Demand Planner Benchmark Study Sponsor: ToolsGroup Sponsorship from ToolsGroup made this benchmark study possible. Our thanks to them. About ToolsGroup ToolsGroup is an innovation partner for companies who want to achieve highly accurate demand forecasts, outstanding customer-service levels and less global inventory. Our Supply Chain Planning and Predictive Demand Analytics software models the demand signal across multiple dimensions so customers master demand volatility and achieve excellent service levels. Our unique Powerfully Simple approach supports highly intelligent decision-making, combined with ease-of-use. It makes planning easier and more productive, because the system is able to do more of the work on its own. Our solutions span key demand analytics and supply chain planning areas such as Demand Planning, Demand Sensing, Promotion Forecasting and Inventory Optimization. We have more than 250 customers worldwide and one of the highest customer retention rates in our industry. Our experience includes manufacturers, wholesale distributors and retailers in a wide range of demand and inventory-driven industries. Our North American headquarters is in Boston, Massachusetts and our an headquarters is in Amsterdam, The Netherlands. We also have offices in major cities throughout and distribution partners around the world Demand Planner Benchmark Study 13
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