on 09-17-2009 2:56 PM
I have a general question regarding feature/promotion management.
Feature/Promotion Definition: This is a discounted price for a period of time, e.g. Buy one, get one free, Buy one, get two free, $1 off.
We want to isolate normal demand and feature demand. So for a product say Product 1234567, has 2 demand streams normal and feature, how would DP handle that from both a forecasting and history perspective.
Can DP be configured to identify the order type and isolate the feature as a spearate demand stream, but I cannot remember how it handles the history, whether it groups the history e.g. normal + feature or isolates the normal and feature in separate info cubes.
Any suggestions/best practice?
Hi Joel,
I suggest you can follow the below link
http://help.sap.com/saphelp_scm70/helpdata/EN/21/b1093d97a8c47ae10000000a114084/frameset.htm
The process goes as follows:-
1. The demand planner creates the baseline forecast using mass processing.
2. The demand planner checks the forecast results in interactive demand planning.
3. In promotion planning, promotions are created: for example, marketing's promotional calendars, trade promotions, and knowledge about the decline of a competitor are all applied to the sales key figure. Promotion planning is accessed through interactive demand planning.
4. In interactive forecasting, the demand planner views the impact of all planned promotions on total forecasted sales and makes the final adjustments to the demand plan.
5. The demand plan (the sum of the baseline forecast, the promotion plan and the final adjustments) is released to SNP.
6. The constrained SNP plan is passed back to Demand Planning.
7. The accuracy of the forecast is checked against actual data.
Regards
R. Senthil Mareeswaran.
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Senthil,
You have answered my question. Thank you. I knew we could manage promotions going forward, but managing hysterical (pun) data was the issue. There seems to be a sentiment that Promotions do not work in APO, and I have been preaching that it is core fucntionality.
I really appreciate your time with this.
Joel
Yes Joel, you are right.
Please confirm whether your query is resolved
Regards
R. Senthil Mareeswaran.
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Hi Joel,
One of the major advantages of planning promotion is that it has the
ability to correct sales history by deducting from it past promotions,
thus obtaining unpromoted historical data for the baseline forecast.
In infocube, system uses Promotion Planning to record either one-time
events or repeated events such as quarterly advertising campaigns.
Regards
R. Senthil Mareeswaran.
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Hello Senthil,
Thanks for the reply. So if I understand you correctly if I have 2 distinct data feeds, 1 for base and 1 for promotions, you load them independently into the info cube and the palnning book will display the baselline forecast and the promoional lift separately? A planner can then see that the lift was due to a promotion in that period?
Thanks.
Joel
Hi Joel,
In DP you can do this in multiple ways:
A. Using Promotion Planning feature:
1. First define the settings for promtion planning. Create promotion for that particular product using the tool. Now this promotion can be absolute (incremental over baseline forecast) or even percentage of the baseline forecast. Then write a macro to add the promotion number over the baseline forecast number
B. If you are not using Promotion planning feature, create another key figure to manually input the incrememntal promotion volume and then a macro to add the effect of this promotional volume.
Regards,
Kedar
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I understand this answer for promotions going forward, e.g. from today forward in the future. But my question is centered more around how to handle history. If history contains 2 streams, 1 for base forecast and 1 for promotions how is that handled in the info cube? I can see setting up a key figure and load the info cube with the base data and promotion data independently. How does the planning book represent a promotion that happened in history? That is where it get's sticky.
Any help would be greatly appreciated.
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