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Former Member
Apr 06, 2012 at 01:44 AM

Popular DP Key Figures in CPG orgs.

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Dear DP Business Experts,

If you were to propose top 10 calculated key figures/metrics in a standard APO DP implementation, what we be they. You are free to make assumptions. What I am looking for are numbers that made sense for planners to arrive at a good demand plan and also achieve some objectives like reducing avg inventory. The products I am talking of are packaged snack foods and beverages. Assume make to stock largely and some sales against orders. Promotions and life cycle planning will be used. No collaborative planning.

Here are some I am considering. Some of them may sound like supply side numbers but there is no reason I see in not being able to provide them in DP for planners to arrive at a good demand plan based on all sorts of information. What I may not be aware of at this point are possible difficulties and data consistency related aspects (e.g. measure consistency at various CVC levels) over a long term to make good sense of these numbers.

Expected Stock out - I still need to think of the right formula but it is what it means. If I plan for a final demand of d units in a period, based on some other key figures, what is the likelihood of demand being not being met. I can think of a value between 0 and 1. 0 could mean there is 100% certainity of meeting the sales demand. Of course there are assumptions

Expected Expiration risk: Over planning causing possible loss of sales due to expired or near to expiry products.

Post facto forecast error: After the fact error. Which I can then use as a reference to get a pseudo safety stock quantity in DP books.

CoV- between Final Demand and Actual sales.

Planned Safety factor: !

Moving Average sales: 3 months, 6 months, ratios etc

Feel free to add more.

Thanks

Guru