focus on
forecasting & planning performance
contents integration of planning and finance at meat processing giant
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pharma group experiences benefits of aps implementation
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the fun-way to enhance multidisciplinary teamwork
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customer collaboration key for consumer lighting business
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one source of planning truth for global shipbuilder
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eventcasting enables perfect deliveries and on-shelf availability
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optimize forecast accuracy and business visibility
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technical textiles producer outsources forecasting to eyeon 18 a seamless solution for interim supply & demand planning tasks
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how to make a plan that can take a hit
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increased success through statistical forecasting with macroeconomic indicators
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inspirational surroundings for bright ideas about the future
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eyeon - leading in advanced solutions for business planning and control
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eyeon networks: defining tomorrow’s best practices
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colofon 32 notes page
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integration of planning and finance at meat processing giant
VION Food Group Global food company active in the fields of high-quality foodstuffs and ingredients for people and animals. EyeOn contact: AndrĂŠ Vriens Email: andre.vriens@eyeon.nl
The VION Food Group is a Netherlands-based, multibillion-turnover food-processing company that serves leading European supermarket chains with fresh meat products. Itself a market-leader in several product categories, the group follows strategies of customer intimicay, product leadership, sustainability and operational excellence. It was in the latter respect that the group consulted with EyeOn with the broad goal to integrate business planning by linking strategic, operational and financial planning. By deploying a single model across the enterprise and leveraging VION’s information assets, executives and managers would be able to evaluate plans and activities based on their true business impact.
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Integrated business planning provides a planning platform across commercial, operations and finance, generating an understanding of performance drivers and the financial impact and interdependencies across planning alternatives. This was a perfect fit with VION’s objectives, which included creating greater transparency, increasing the ability of the whole organization to learn and have management information available to it with more emphasis on planning and forecasting. André Vriens was involved in the entire project from the very beginning. “A multifunctional project team was assembled and we looked at what they wanted to achieve and which pieces of information could be put together to give a complete picture of the entire organization. In the planning & forecasting project there was an existing tool (Hyperion Planning) with which VION was already familiar. This tool was customised so it could be used to support the change process within VION and it was found to be a good choice.” What followed was in André Vriens’ words, ‘one of the best examples of integration and alignment of business processes available.’ In a nutshell, the planning process was redesigned to integrate the financial and planning processes using Hyperion and different building blocks with just a limited
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number of key performance indicators. EyeOn guided this process and configured the tooling following the basic rule that actions need to be defined that support strategic objectives and thus closing the gap between tactical planning and strategy. The entire Dutch part of VION Food is now running the process, which is helping to translate targets into actions. Erwin van Amelsfoort is VION’s Food Division Controller. “EyeOn consultants are very knowledgeable in the field of Food & FMCG, so our industry is very familiar territory for them. They are pragmatic, think openly and they interface easily with VION. EyeOn’s commitment is also very good. Knowledgeable resources are always available for VION making things happen, meeting our expectations. This ultimately leads to a longer relationship with us as a customer and it gives EyeOn experience that can be applied to other clients. If projects in the areas of planning and forecasting come about within VION then we will automatically think of EyeOn.”
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pharma group experiences benefits of aps implementation
Johnson & Johnson Bringing innovative ideas, products and services to advance the health and wellbeing of people worldwide. EyeOn contact: Bram Bongaerts Email: bram.bongaerts@eyeon.nl
The Janssen Pharmaceutical Companies of Johnson & Johnson are dedicated to addressing and solving some of the most important, unmet medical needs of our time in oncology, immunology, neuroscience, infectious diseases and vaccines, and cardiovascular and metabolic diseases. From its five API (Active Pharmaceutical Ingredient) manufacturing sites, the company produces more than 100 active ingredients, involving in total around 600 production processes. One API is typically made through a sequence of 2 – 18 production steps, each representing a chemical or a physical process (e.g. milling, sieving, drying). Campaigned batch production of these syntheses on multipurpose equipment across a global network makes planning a complex multidimensional exercise.
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In 2009, the company started a project to roll out one single SAP template, already used in the European fill and finish sites. The objective was to harmonize and align the business processes using one common platform. Additionally they aimed to roll out one global Advanced Planning System (APS) across the API network, integrated with the harmonized ERP platform. By April 2012, one single global planning and integrated scheduling system was installed at the five sites, supporting the creation of one global network master schedule, linked with the local factory schedules and driving the MRP, manufacturing execution and yearly budgeting through integration with the newly implemented ERP. Almost one year into the new concept, the first benefits are visible and achieved. The planning concept has enabled harmonization of processes across sites, thereby leveraging planning expertise. By its integrated design, the sites are now linked through one single plan. This has allowed global reporting of planning information covering the entire chemical scope.
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Furthermore, moving to a unified system landscape has enabled Janssen to install a strong support structure through process ownership, key users and first and second line IT support.
“The single planning and overview has led to increased transparency, visibility and alignment across the different sites as well as to consistency of both planning and scheduling data,” says EyeOn consultant, Bram Bongaerts. Dirk van den Wouwer, Director Chemical Planning at Janssen Pharmaceuticals, is equally enthusiastic not only with the results, but also on how the project was planned and executed. “We asked EyeOn to provide us with some support as we had good past experiences with them. I really appreciate their no-nonsense and pragmatic way of working. I think it’s positive that they are really focusing on the content of the job and therefore achieving quick results.”
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the fun-way to enhance multidisciplinary teamwork
Máxima Medical Center The largest medical center in the South East Brabant region with over three thousand employees en specialists. EyeOn contact: Edward Versteijnen Email: edward.versteijnen@eyeon.nl
Opened by Her Royal Highness Princess Máxima of the Netherlands in September 2012, the Women’s Mother Child Centre at Máxima Medical Center in Veldhoven represents a new concept in family-centered care. Designed to meet the precise needs of the patients and their appropriate care processes, the centre includes a new maternity suite that ensures that a newborn child and mother are kept together, even if a baby is born prematurely, or when the mother is ill or recovering from childbirth. The underlying idea is that mother and child recover better if they are kept and treated together. Adjustment to the new situation required an increase in coordination between the various units, especially regarding combined medical care and the best places to accommodate mother and child. It also required a shift to multidisciplinary teams and familiarization of staff with patient logistics. With this as the main focus, more than 60 specialists, doctors, midwives and nurses participated in a unique game that
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prepared them for the fundamentally different situation at the new center. Together with the doctors, staff and unit heads, EyeOn developed a game played between multiple participants and involving two teams (centres), which competed against each other to reach chosen targets. Each team tried to consistently reach the right decisions, such as placing new patients (represented by balls) in the appropriate department and responding to sudden emergencies, such as the birth of a seriously ill child. The game gave participants first-hand experience of the new way of working in the remodeled environment and triggered discussions that created new ideas about the coordination of patient streams. “It is very important for participants in this type of game to physically work together instead of through a software program on a computer,” says EyeOn consultant, Edward Versteijnen. “First of all it adds an element of fun to the change process. But beyond this it contributes significantly to teambuilding while adding momentum to the entire exercise.” EyeOn has several ‘serious games’ that can be applied, e.g. also a hospital game that provides excellent insight into the benefits of integral planning at overall hospital level.
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Manager of the Women’s Mother Child Centre, Freek van Daal, initiated the project with EyeOn, after being a member of an EyeOn network group for hospital planning. “The previous processes revolved around doctors and staff rather than patients. The biggest proposed change was in patient logistics and required close collaboration between gynecological and neonatal staff. In the previous scenario they had their own separate departments, but were now facing new processes where they would all be working together. Simply telling them to change was not an option. The game was fun and participants were energized and motivated to win. Discussions were sometimes heated because of the realistic nature of the situations, but the mixed teams of gynecological and neonatal staff collaborated very well together. After the sessions, basic rules for patient logistic were formulated and anticipated problems with suggested solutions centrally fed back. This enabled appropriate measures to be thought through and standardized ahead of the new processes starting up.”
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customer collaboration key for consumer lighting business
Philips Lighting Innovative, energy efficient lighting solutions and applications for public places and at home. EyeOn contact: Emile van Geel Email: emile.vangeel@eyeon.nl
Philips Lighting is literally a household name across the globe and accounts for one-third of the electrical giant’s turnover. Its consumer luminaries business has over 4,000 different stock items and has a rapidly changing portfolio of about 20%-25% on an annual basis. Characteristic of the consumer luminaries business are short lifecycles and large seasonality fluctuations in sales. For instance, indoor lighting sales are boosted as daylight begins to shorten and outdoor sales increase as spring arrives. It was in connection with getting a handle on relationships with its main sales channel that Philips began working together with EyeOn. DIY-market chains are principal outlets for Philips consumer luminaries, and nurturing relationships for the DIY channel has become somewhat of a science, as EyeOn consultant and senior project lead, Emile van Geel, points out. “Improving customer intimacy can be achieved with data, which the
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customer can make available by simply reviewing the inventory at their site. This point-of-sale data is of real value because it is the starting point for a host of planning activities and actually improving your portfolio.” Portfolio enhancement is a critical aspect to remaining competitive and makes sound financial sense. For instance, a decision to replace the number of so-called ‘C’ products with higher-value luminaries would automatically boost turnover. Data analysis is the start of such a decision-making process. It also enables new product introductions and the phasing out of mature lines to be planned more effectively, as well as helping to understand how demand patterns are built up. “Around 80-90% of the volume sales are related to pretty stable sales patterns. The minority of the products are responsible for this volume, however, large spikes in demand can often be traced to coincide with specific events and promotions,” says Emile van Geel. “A good insight into total demand is necessary to achieve a balanced inventory situation and once you have this kind of a relationship with a customer you can add real value to their business. A good relationship also works both ways. Favorably regarded suppliers will find it considerably easier to negotiate contracts and are more likely to be forgiven in the
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event of poor delivery performance.” Good collaboration has a dramatic effect on end-to-end supply-chain management, too. It means you have a true insight into real market demand and this can be used to reduce the so-called ‘bullwhip effect’, which creates demand-supply disparity problems in forecastdriven distribution channels. This negative effect is amplified the further one moves upstream from the customer in the supply chain, hitting the manufacturer hardest. “If you can reduce this effect, you will have a much easier situation, have much improved supply planning and better delivery performance,” says Emile van Geel.
Maurice Mol, supply chain account manager at Philips Consumer Luminaires: “At Philips Lighting EyeOn has taken the first steps in helping to create insight by carrying out analyses and giving feedback based on facts and data. With the support of EyeOn, the customer collaboration program is now rolled out to 40 key customers in Europe. This will result in increased sales and availability for Philips Lighting’s customers, an improved portfolio for Philips Lighting and in higher sales at lower costs for everyone.”
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one source of planning truth for global shipbuilder
Damen Schelde Naval Shipbuilding Specialized in the design and construction of naval vessels and complex commercial vessels. EyeOn contact: Paul Husslage Email: paul.husslage@eyeon.nl
Damen Schelde Naval Shipbuilding is a long-established company and part of the Damen Shipyards Group, a conglomerate of shipyards worldwide. For 50 years the company has been the sole supplier of surface combatants to the Royal Netherlands Navy (RNLN). In 2012, a new type of high-
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end patrol vessel built by the company for the RNLN won the 2012 ‘Ship of the Year’ award. Besides working for the RNLN, Damen Schelde Naval Shipbuilding also builds navy vessels for foreign navies. The global marine industry is highly competitive, so Damen Schelde Naval Shipbuilding works with EyeOn to keep its activity planning and materials planning processes moving forward. “We have to deal with multiple projects simultaneously, all over the world,” says Frank Verhelst, who is Manager Project Department in Vlissingen, where the company has construction and outfitting facilities ranked among the best in the industry. “We already had integrated planning, but we wanted to take a big step towards a more uniform method of planning and make it better usable for the whole organization. Therefore, we also wanted to develop the business-planning level to include, for instance, key indicators affecting cost and performance. A key focus was to try and reduce the risk factors in our planning, and logistics was a major consideration here, while making improvements that would reflect a uniform method using sophisticated planning software. We now have a single software tool that brings planning closer to our people and where everyone sees the same information.”
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Frank Verhelst had this to say about the cooperation with EyeOn. “EyeOn people are very hands-on and bring a fresh, outside view. They have excellent communication skills and are quick to take concrete steps. This may look easy to do, but it isn’t as easy as it seems.” Damen Schelde Naval Shipbuilding was supported in its latest project by EyeOn consultant, Paul Husslage. “The result of our work is a single, transparent and uniform planning method set up together with the planners from the Project Department and taking into consideration all Damen Schelde stakeholders. This method is now used for all Damen Schelde projects and also takes into account multi project information. Extensive training was recently given with EyeOn’s help to a core of more than 100 people from all levels of the organization to ensure proper embedding within the organization.”
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eventcasting enables perfect deliveries and on-shelf availability
Jumbo & Mars Jumbo: Dutch supermarket chain that puts customer satisfaction on top. Mars: worldwide active in Chocolate, Petcare, confectionery and Food. EyeOn contact: Niek van de Crommert Email: niek.vandecrommert@eyeon.nl
A unique partnership between food and confectionary manufacturer, Mars Netherlands, and Dutch supermarket chain, Jumbo, has resulted in a sustainable solution for reducing costs and unnecessary inventory in the supply chain. Both companies have broken with tradition by identifying and integrating their planning processes. In doing so, they have succeeded in streamlining their order flow to provide faster and more efficient deliveries. This has resulted in the complete availability of Mars products at Jumbo. The breakthrough came with the help of a new concept called Eventcasting, which was developed in collaboration with EyeOn. A problem that frequently arose in the information and supply chain prior to the new situation was lack of transparency due to inadequate communication between the sales and logistics departments. This had a negative impact on costs, inventory and product availability. “There was a great need
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After an initial analysis, EyeOn quickly recognized the problems facing both companies. Both are experiencing increasing market volatility and complexity. In the case of Jumbo, communication in the value chain was found to be difficult and it was experiencing more and more peaks and dips in sales. The situation required a solution that reduced stocks and kept the shelves filled more optimally. Enter the Eventcasting tool, which is used for forecasting consumer demand and calculating it for the entire chain. As demand can be forecasted more accurately, delivery vehicles can be loaded more efficiently and used more effectively. “The supermarket chain does not need to hold large inventories of Mars products and can respond more quickly to the needs of consumers,” says Frans van den Boomen, Value Chain Manager at Mars Netherlands.
for better communication among all disciplines involved,” says Karel de Jong, Supply Chain Director for Jumbo Supermarkets. “Information exchange is now more frequent and complete, and so the activities in the Mars-Jumbo chain run much more efficiently.” EyeOn’s contribution to the turn-around for both companies was essentially twofold: 1) acting as a facilitator in bringing everything together, including all relevant information and supply-chain people, and 2) modeling the data to create a picture of how the respective activities would be affected by the changes made. EyeOn now generates an overall demand forecast for the complete value chain. “We start by forecasting the end-consumer demand and calculate this with all sales and logistical inputs for all parts of the chain,” says Niek van de Crommert, planning expert at EyeOn. “The results and improvements are then tracked from the cash register to the factory using a joint scorecard for making quick adjustments when needed. In addition to better availability and optimizing stock levels, the solution has reduced supply-chain and other costs.” The Eventcasting concept can be quickly and easily scaled up for other retailers and manufacturers.
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optimize forecast accuracy and business visibility
Bosal One of the leading manufacturers of exhaust systems in the world. KeyOn contact: Jan Veerman Email: jan.veerman@keyonplanning.nl
The Dutch registered automotive group Bosal is a well-known tier one supplier to the automotive industry worldwide. From its 34 manufacturing plants and 18 distribution centers, the company supplies a large variety of products to OEM’s like Audi, Volkswagen and General Motors. Bosal has decided to further professionalize their integral Sales & Operations Planning (S&OP) process to reduce stock levels, increase customer service and to create the ability to match the operational S&OP planning to a financial forecast. To achieve these objectives, Bosal has chosen an innovative solution
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by outsourcing the complete process of the creation of a statistical forecast and the S&OP reports to KeyOn. Using the cloud based Anaplan planning tool, KeyOn and Bosal worked together in standardizing all the operational planning processes and providing enterprise wide visibility of forecasts and plans. Anaplan provides detailed, SKU level forecasts and plans to all entities of Bosal and supports strategic and tactical supply chain planning. “The chosen platform enabled us to model Bosal’s business, gain insights, align operations and execute processes,” says KeyOn consultant, Jan Veerman. “Using Bosal’s actuals, we were able to create a realistic sales forecast in which products were categorized according to nine buckets. For mature products we gained visibility into the specific actions necessary to satisfy annual sales per country. Different procedures were adopted for new and also end-of-life products, deriving in a monthly output based on annual figures.” Today’s solution simply requires the regular loading of stock information, pricing and master data into Anaplan, which can be logged onto at any time by Bosal staff via the Internet. The information output gives an immediate and
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accurate insight into product-levels, actual sales and forecasts to enable Bosal to react quickly to changing markets and stocklevel situations. As KeyOn’s first software customer in the Benelux, Bosal has experienced several benefits resulting from the strategic and operational planning support improvements, as Bosal’s Jon Kuiper, Group Sourcing & Supply Director, explains.
“Together with KeyOn and the Anaplan software we have been able to drive significant improvements in our planning processes. Within a timeframe of 6 months we have been able to give our sales and manufacturing operations integral visibility.” Bosal’s Arthur van Bergen, Supply Chain Manager After Market, says: “By implementing Anaplan we have been able to fundamentally change and improve our new product introduction (NPI) process giving real-time information to key stakeholders, like our sales force.”
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technical textiles producer outsources forecasting to eyeon
Bonar Product development and manufacturing in extrusion, spinning, fleecing, and molding of various synthetic materials. EyeOn contact: Stijn Rutjes Email: stijn.rutjes@eyeon.nl
Bonar is part of an international group manufacturing and supplying a wide range of high-performance specialist materials for a broad customer base. The company is a globally active leading producer of high quality industrial nonwovens for flooring, automotive and construction applications. It also produces 3D polymeric structures and composites for civil engineering, building and industrial applications. Within Bonar there is a world of technical expertise in terms of innovative product development and manufacturing expertise in extrusion, spinning, fleecing, and molding of various synthetic materials. But on the business front, it very much keeps an eye on best practices being used outside the company. In this context, its relationship with EyeOn has
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proved very useful and dates back almost a decade to when major restructuring took place at the company, which was formerly known as Colbond. In the past, EyeOn has assisted Bonar in areas such as planning strategy with a view to increasing efficiency, but in this latest project EyeOn’s experience in the field of forecasting is proving useful. “The diverse nature of our product range means that we are part of a highly complex supply chain in which forecasting accuracy is critical,” says Bart-Jan van Beckhoven, Bonar’s Director Logistics & Information Management, who is based at the company’s Arnhem site in the Netherlands. “We were constantly presented with a situation where sales made a forecast, which was used by manufacturing to make a corresponding production plan. The setup left a lot to be desired and we wanted to take on board an outsider’s view and gather information to evaluate a forecast-outsourcing concept.” In a nutshell, EyeOn first analyzed the wealth of historical data available at Bonar to establish the demand patterns and determine the value of statistical forecasting. It then defined the forecast outsourcing process, including demand-planning
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process and the roles and responsibilities within it, which was translated into a value-based demand plan. Finally, EyeOn set up a statistical tool necessary to drive the demand-planning process. The entire assessment and initialization phases took 8 days in total and Bonar is well pleased with the results so far.
“We knew EyeOn as being very knowledgeable with many skills in house, including a couple of consultants who specialize in my own field of econometrics. They proved exceptionally good at using their standard tools to help us going forward and we highly value the fact that we both speak the same language. Furthermore, being in their process network means that we no longer have to wait until issues arise, but can keep benchmarking against best-in-class companies to constantly update our thinking on how we run our day-to-day business”, says Bart-Jan van Beckhoven.
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a seamless solution for interim supply & demand planning tasks
Eastman Produces a broad range of advanced materials, additives and functional products, specialty chemicals, and fibers that are found in every day products . EyeOn contact: Eric Eggenhuizen Email: eric.eggenhuizen@eyeon.nl
Eastman is a global specialty chemicals company and a world leader in delivering innovative, technology-based solutions for various markets. Its products range from advanced materials, additives and functional products, to specialty chemicals and fibers, which can be found in everyday products. These include raw materials for the adhesives and sealants industries, where for more than 50 years Eastman’s expertise has helped to make polymers work for its customers. When Eastman needed an interim supply planner for one of its strategic product groups, they called EyeOn. The requirement was to quickly master the job vacated by a retiring
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employee and to capture and transfer knowledge. “We knew EyeOn through our participation in its process network and had good previous experience,” says Petra Wood, Eastman’s Manager Global Adhesives & Plasticizers Supply Chain. “We quickly found someone with an impressive profile who proved to be very professional, knowledgeable and versatile.” Tasks involved supply planning, product allocation management, improvement of the planning parameters review process, and determination of the batch sizes and inventory levels. Additionally support was also given for implementing a new planning software package, including the development of a new methodology for planning using this software. Shortly afterwards, when another position needed filling to provide continuity for critical sales and operations planning processes, Eastman once more looked towards EyeOn for support. Again it found a good consultant more than able to fulfill the role of interim demand manager for one of its business units. In this case the tasks included management of the demand plan, demand meetings, interfacing between the business and supply chain and a number of improvements processes.
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“In our experience EyeOn is very responsive and always gets the job done,” continues Petra Wood. “There are several factors that contribute to this. First and foremost they have proven experience, especially on the supply planning side, and come up with the new ideas one always hopes to bring in from someone with an outside view. Second, they have very high standards, from which we are able to learn. From our point of view they have exactly the right skills in house for interim management.” In a spin-off project resulting from its positive experience working together with EyeOn, Eastman is now reviewing its demand planning for another business unit. “The intention is to make sure that the planning process runs as effectively and efficiently as possible. EyeOn has provided valuable insights that have put us in a position to now bring this project to conclusion” concludes Petra Wood.
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how to make a plan that can take a hit
As markets become more dynamic and less predictable, decisions taken today can turn out to be outdated tomorrow. Robust optimization offers a framework to account for business uncertainty and enables companies to make business plans that are both efficient and resilient to uncertainty. Many decision-making processes in the logistics and supply-chain sector are supported by state-of-the-art optimization techniques. A well-known example within Sales and Operations Planning (S&OP) is the allocation of products to production locations. Given a demand-plan and relevant cost factors, conventional optimization models are capable of assigning demand to production locations such that total production costs are minimized and each demand is satisfied. These optimization models typically work with a large set of input parameters that require vast preparation to collect and feed into the model. In many cases, assumptions need to be made about the values of these input parameters since the exact values are uncertain or simply not available. The solution for a conventional optimization is only optimal for the set of input parameters at that point in time. However, applied in business over a given period, it is likely that the input parameters have changed and the solution is no longer optimal. In the product allocation example above, the actual demand may deviate significantly from the assumed
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demand-plan such that the allocation plan is no longer optimized. “One could think of examples where even the smallest deviation in input parameters causes the optimized solution to become completely inefficient,” says EyeOn consultant, Ieke le Blanc. “In other words, these solutions are optimal right after optimization, but lack robustness.” In order to take the uncertainty of input parameters into account, robust optimization has gained a lot of (scientific) attention. Instead of revolving around a set of fixed input parameters, this innovative technique “knows” that parameters are uncertain and is capable of obtaining solutions that are both efficient and robust. These solutions are resilient and can cope with varying input parameters. The figure on the right shows the power of robust planning. The optimal plan yields the highest profit but doesn’t consider the underlying uncertainty in the expected demand. In practice, it is unlikely that the actual demand will perfectly match the demand plan and slight deviations may cause the generated profit to decrease abruptly. Hence, the optimal plan only performs best in a narrow interval of actual demand. Creating a robust plan that considers uncertainty performs better for a much wider interval of demand realizations, albeit at the expense of maximum achievable profit.
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Profit
Optimal / non-robust
Suboptimal / robust
Demand The optimal/non-robust plan performs worse than the suboptimal/robust plan in case of slight deviation from the anticipated demand.
Robust optimization offers provable added-value for efficient business planning. “In tactical planning, where one repeatedly constructs a mid-term demand/procurement plan, robust optimization may be quite beneficial as uncertainties in future demand or prices can have an impact,” says Ieke le Blanc. “Being able to anticipate uncertainty is crucial and can lead to substantial cost savings. In today’s dynamic market environment, it is essential to make a robust plan that can take a hit!”
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increased success through statistical forecasting with macroeconomic indicators
Nowadays, many companies consider the forecasted sales (or market trend, market share, etc.) as an essential input for many Decision Making Processes (DMPs). Short term forecasts are often used to support production and inventory managers, while capacity, investment and marketing managers typically are more interested in long term forecasts. For these short term forecasts, it is often sufficient to use an extrapolating technique (e.g. exponential smoothing, moving average or the more sophisticated ARIMA model).
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However, such methods often do not give satisfactory results for the mid and long term. Due to this increasing forecast horizon, the chance that a certain trend will change within this time interval increases dramatically. “Especially in these times of economic uncertainty, an accurate mid to long term forecast is essential to recognize threats and to anticipate on those few chances,” says EyeOn consultant, Dennie van den Biggelaar. “Therefore, a manager is typically interested in future trend changes rather than extrapolating the current trend.” Fortunately, many trend changes have a causal relation with certain macroeconomic drivers. For example, there is a strong causal relation between the sales of ice skates and the weather. When a winter is sufficiently cold and the Dutch lakes are frozen, people are more likely to buy ice skates. However, this relation would not be very useful in a forecasting model since we do not know whether a certain winter will be cold enough beforehand.
two events. First, a permit is granted and after a certain time the building will be constructed. This means that a change in permits granted now will most likely result in a future change in construction activity. It might be a good idea to include the number of permits granted in a regression forecasting model. Identifying these causal relations with a delay is the key to improving mid/long term forecast accuracy. “Forecasting is bringing the future into the present. Planning is doing something about it now. A more accurate forecast typically leads to better plans. Better plans lead to more success,” concludes Dennie van den Biggelaar.
Another example is the causal relation between permits granted and the construction industry. This relation is more useful because there is a natural time delay between these
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inspirational surroundings for bright ideas about the future
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about eyeon
EyeOn is proud and privileged to have its headquarters at the unique location of Castle Croy, which is situated at AarleRixtel, just north of Helmond and close to the city of Eindhoven. This centuries-old national monument was once the historic seat of nobility, but was bequeathed to a charitable organization in the latter half of the 19th century for the shelter of the elderly.
Of course the entire building is equipped with wi-fi and there is a cozy lounge with a bar and a beautiful garden in which to relax. In view of the uniqueness of the location, we have made it our policy to share it with our valued relations. And in this context, we extend a warm welcome to you should you wish to join us this spring and use Castle Croy for a business meeting.
The castle was evacuated in 1976 and completely restored in the 1990s, upon which it became available for use by commercial organizations. EyeOn grasped the opportunity to acquire office space at the castle.
For more information about renting spaces please contact: Freek Aertsen (freek.aertsen@eyeon.nl) Andries Mulder (andries.mulder@eyeon.nl).
Set in beautiful rural surroundings, this fairytale castle is completely untouched by modern hands on the outside. But on the inside it is a different story. Offering a modern office environment with extensive facilities for meetings, brainstorming, workshops, training and presentations, the castle is the perfect place to contemplate and discuss future plans.
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eyeon - leading in advanced solutions for business planning and control
As a leading consultancy firm in the field of business planning and control, EyeOn actively supports its clients by improving bottom-line results through forecasting and planning process optimization, and by ensuring that the supply chain is demand driven. Better planning and control processes positively impact sales, margins, organizational costs and working capital. This proposition is the driving force behind EyeOn’s vision to be the leading and most innovative company in the area of business planning and control. And this is the reason why our fast-growing list of global clients includes many market leaders.
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about eyeon
EyeOn believes that the pillars of successful planning are efficiency, speed and collaboration, which is why our strategic approach is to optimize these three factors successfully within your company. Working closely together with our clients, we essentially generate concepts and ideas for improving planning processes. Our experience shows that optimal planning and control cycles can only be established when functional planning and control processes, e.g. supply chain management, financial, product development, sales, etc., are integrated company wide. This is why we take a strong multi-disciplinary approach in our work, which includes the re-engineering of processes, the implementation of appropriate tools, change management and project and programme management. EyeOn has the ability to identify improvement potential, define and apply the required planning models and implement the best solution. Our tools have been implemented within many different organizations and our model has been applied to diverse markets around the world. We use checklists, process survey tools and best-in-class maturity models to evaluate current situations and to ensure the shortest time to improvements. Projects typically deliver results in less
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than100 days and have a measurable output. In addition, EyeOn also organizes events at which companies meet and discuss new developments. These events include inspiration days, round tables and master classes on forecasting and planning related subjects, as well as general network meetings that cover a range of fields, from high-tech, food and FMCG, to life sciences, care and process industries. Among the participants are many blue-chip companies and key market players who are at the forefront in their respective sectors. Last, but far from least, an organization is only as good as its people, which is why EyeOn consultants have years of practical experience in their own field combined with a strong multi-disciplinary approach. They also have line management experience and the capacity to work autonomously. In short, our consultants can make a fast and lasting impact on your bottom-line and are the vital force that makes EyeOn a valuable business partner.
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eyeon networks: defining tomorrow’s best practices
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about eyeon
EyeOn organizes and facilitates network meetings so that companies active in markets ranging from high-tech and process industries through food & FMCG to life sciences and care can come together and discuss topics of mutual interest. A glance at the EyeOn network members on our website will reveal the names of many companies positioned at the forefront of their respective markets. Since the first of these network meetings was held in 2005, we have organized many similar events and our network has expanded over the years to total well over 150 participating companies across all segments. At these events, we always exchanged knowledge in an open and accessible fashion because we believe that knowledge grows by sharing it. Network meetings typically explore today’s challenges and seek to develop innovative solutions. Peer companies and EyeOn specialists share business practices, new developments and proven solutions in a chosen area. Quite often participants can pick their own schedule, but expert sessions and presentations by inspiring people are frequently an integral part of the agenda, as are workshops and brainstorming sessions.
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Recent examples of network meeting topics include: anticipating business cycles, scenario planning in budgeting, making the most out of point-of-sales data, statistical forecasting and allocation management, next-generation demand planning, reducing costs and improving working capital, the reduction of order-to-delivery cycles, and inventory management strategy. EyeOn also chairs bi-annual round-tables at which senior executives from large companies gather to share their experiences and discuss the latest developments in a particular field. The round-tables usually lead to research studies in cooperation with local universities. Network members also have the opportunity to participate in company visits organized by EyeOn. These offer an insight into the organization and operations of the host company and usually include a tour of the plant facilities, as well as presentations on topics of interest to the visiting group. For more information about the networks, please visit our website: www.eyeon.nl.
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thanks to Special thanks to our customers for their cooperation to make this brochure possible. pictures Large top pictures: Shutterstock, Philips, Damen & EyeOn EyeOn employee pictures: Eric Borghs & Martine Harmeling Client pictures: clients & companies made by Interviews and texts: Paul Levitt (Moscom Communications) Format: Launderette Design: Martine Harmeling (EyeOn) Printed by: Drukkerij Kempers about eyeon In striving for success, large companies have to continuously struggle against growing internal complexity. We help our clients manage this complexity by designing, implementing and executing excellent planning processes as a discriminating factor for this success. In order to achieve this, we develop and share knowledge about top level planning and forecasting, with constantly demonstrable return on investment for our clients. eyeon Š 2013
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EyeOn bv Croylaan 14 5735 PC Aarle-Rixtel The Netherlands Tel.: +31 492 38 88 50 www.eyeon.nl
EyeOn Amsterdam Herengracht 124-128 1015 BT Amsterdam The Netherlands Tel.: +31 492 38 88 50
EyeOn BVBA Belgium Drie Eikenstraat 661 B-2650 Edegem Belgium Tel.: +32 3 826 93 46
EyeOn Dinalog Princenhagelaan 13 4813 DA Breda The Netherlands Tel.: +31 492 38 88 50
KeyOn bv Croylaan 14 5735 PC Aarle-Rixtel The Netherlands Tel.: +31 492 38 88 28 www.keyonplanning.nl