Pricing, COGS Forecast and Scenario Planning

Managing product prices effectively is needed more than before in today’s supply chains. Digital pricing in SCA Planner meets this critical need. It works across the supply chain and ensures price control and audits. With SCA Planner pricing, there is greater reliability in price management. tight integration into the purchasing agreement and automated price auditing. As a result, pricing reflects the supply chain dynamics in real time for changes in items, commodities (for formula purchases), sales etc. The payback is quick with savings in price approval process, reduction in invoice errors, lower accumulated variances with timely price updates and productivity improvement in the supply chain.

Restaurant companies rely on COGS forecasts to protect their margins. However, given the dynamics of commodities, sales, product mix and items, COGS forecast reliability is poor resulting in high restaurant margin risks. With our real-time COGS forecast, chains can analyze more dynamic scenarios, with more accurate commodity and inventory data, and immediately see the impact on cost of goods and margins. This more reliable approach improves store level and investor level reporting and COGS forecasting.

Features:

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• Customers
• Problems/Requirements
• Value Proposition
• Capabilities

• Program Managers
• Supply Chain Managers
• New Product Managers
• Distributors
• Suppliers
• Customers that manage promotional supply to restaurant chain customers

Do you need:

• Full supply demand and inventory visibility across DC and suppliers, including retail sales, with latest real-time data to enable proactive action
• Continuously track and align your supply plan with latest demand projections to avert runout or high cost alternatives for promotional and core items?
• Ability to address ongoing supply demand changes with real-time visibility and supply plan updates
• Execute supply with real-time planning to prevent runouts while reducing inventory and liability
• Plan and track supply plan, inventory through the life-cycle of demand plan from high level forecast to real-time execution
• a stream-lined process across supply chain partners for all items - sales item, regular purchased items and promotion only items
• a fully digital collaboration process across trading partners

Slide One

Martin Dwyer

Application Developer

Slide Two

Rachel Wright

Art Director & Photographer

Slide Three

Andrew Butler

Photographer & Illustrator

Grow sales, increase fill rates, reduce obsolescence and reduce liability with real-time supply planning and execution Unlike traditional supply planning practices that address runout and open orders problems very late, SCA Planner uses technology based continuous forward planning solution that enable pro-active actions across the supply chain partners to align supply with evolving sales and shipments. The result is higher flexibility for changing demand, higher fill rates at lower costs.

Capabilities / Solution Overview

• Translate demand forecasts at sales item / program level to demand at intermediate levels, purchased item levels and raw material levels
• Plan supply ahead of time to cover inventory buildouts, production capacity, allocations and liability at production (vendor), distributor levels for upcoming demand ranges - upper, lower and expected levels
• Extended supply chain visibility into
  • current and projected inventory
  • across finished goods,  purchased / intermediate items and raw materials
  • across distribution centers, production facilities and raw material stocks
• Manage fulfillment by collaborating on the supply plan in real-time
  • real-time system recommended optimal responses order changes, transfers or volume changes
  • across all nodes in the supply chain - DC to DC, vendor to DC, raw material vendor to purchasing vendor
  • leverage system recommended optimal choice to respond to demand changes
• Propagate supply plan updates to COGS forecasts, liability tracking reports to manage costs and profitability thresholds in line with promotion objectives. Manage in both modes with latest updates
  • Final execution plan
  • scenario planning / what-if mode
• Structured real-time collaboration using system recommendations, alerts and messages to update the plan

Benefits:

• Control payments against approved pricing; eliminate over-under billing
• Increase margin reliability at stores with more accurate forecasts
• Improve cashflow with reduced forecast errors
• Increase productivity of the procurement team
• Improve speed of response with digital process

A More Reliable Approach:

Based on years of food industry experience, our COGS Forecast solution helps finance managers understand the drivers for food and paper cost changes and analyze what-if scenarios. Our COGS Forecast leverages real-time updates to provide:

• Automated COGS variance reporting on the impact of product mix, volume, commodities and other factors
• Integrated data from contracts, supplier costs, commodities, margin initiatives and inventory
• Analysis of the drivers of food and paper cost changes, and % of COGS at risk
• COGS reporting by region or franchisee.

Learn More:

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