QAD customers are increasingly incorporating financial viewpoints into supply chain planning. This enables your organization to be more agile and resilient when things change. QAD Digital Supply Chain Planning (DSCP) provides a common framework for Finance and Supply Chain to co-exist within a single planning model. This framework includes the following:
One Number Planning. QAD DSCP gets finance and operations planning working from a single planning model. This model incorporates all cost-incurring or revenue-producing supply chain events, including costs from supplier procurement, production, and freight activities as well as revenue from customer level sales activity. Ultimately, you benefit from a single set of comprehensive planning numbers to enable cross-functional collaboration effectively.
Aligned Planning Experience. Financial analysts work in fiscal periods. Supply chain planners use more granular planning horizons. QAD DSCP uses a planner-specific flexible calendar to provide a rich and meaningful experience to each of your planners regardless of the horizon. Imagine a demand planner reviewing weekly promotional values while a finance analyst is reviewing the fiscal monthly budget adherence. Both are viewing the same underlying data albeit in different KPIs and horizons to make a consensus decision.
Aligning The Metrics. QAD provides a comprehensive library of metrics that can be used to support financial analysts when comparing plan profitability. This list is not exhaustive but includes:
Planned Sales Revenue: This is derived from the satisfied demand of the constrained plan using a customer-specific unit sell-price.
Revenue At Risk: This is the value of the forecasted demand that cannot be satisfied on time due to material or operating constraints. The value uses the customer’s sell price.
Budget Adherence: This can be expressed in value or as a percentage. It is the ratio of the value of planned sales revenue to the value of the budgeted demand.
Service level: This is the ratio of planned sales revenue to forecasted demand. It may be expressed in value or as a percentage.
Working Capital Requirements: This is the value of the required inventory to provide sufficient cycle stock and safety stock to meet the forecasted demand.
Cost of Goods Sold (COGS): The total COGS can be derived using two different methods depending upon the nature of the business. For customers using only QAD’s Demand Planning solution, it is derived from the SKU. For customers using Demand and Supply Planning the costs are accumulated from the sources of procurement, production, and distribution. This delivers value to manufacturers and distributors alike.
Inventory Days: This is the closing inventory on hand expressed as Days of Sales.
Gross Profit: This shows whether the plan is within profitability expectations. This may be expressed as a percentage or absolute value.
Financial Outlook: This describes the business trajectory, based on a current plan, and the expectations for meeting budget commitments.
EBITDA Impact: Learn how the profitability of the plan impacts the Profit & Loss statement. This is measured in currency values.
Cloud deployment. QAD DSCP is available in the QAD Cloud or AWS public cloud. Both options provide a secure, reliable and extensive cloud infrastructure.
Mobility. The QAD DSCP user experience supports Web, mobile and touch screen user interfaces.
Analytics. As IoT and machine learning deliver a greater number of data points, supply chain solutions must have a best-in-class capability to translate data into trends and decision grade analytics. QAD DSCP seamlessly embeds capability from Qlik, a leading business analytics provider. This provides an intelligent and intuitive user experience supporting responsive and accurate decision making.
In-Memory. QAD DSCP uses a highly scalable, rapid in-memory data model enabling real time simulation planning and effective decision support.
Integration. QAD DSCP supports integration with QAD, SAP, Sage, JDE, Oracle, Infor, Microsoft and many other ERP and enterprise applications. It uses a data hub approach to exchange supply chain information across the organization and includes tools for building custom integrations.
