Planning (Sales plan and Purchase plan)
Planning allows you to predict the volume of expected sales and purchases necessary for these sales in a monthly cross-section.
Planning purchases and sales allows us to estimate income and expenditures in the upcoming period, helping to create a budget for the months ahead. In addition, the system allows a variance analysis of the current month’s plan, as well as of plans for the preceding months.
To work with the planning subsystem, click on the link at the top of “Planning”.
The interface is divided into two panels: in the left panel you will see a list of months upon which the plan is based, as well as information on the extent of planned sales and purchases this month (in the purchase and sales prices). The panel on the right contains detailed information on the purchase and sales plan for the month selected on the left (the current month will open by default).
Click the “Calculate plans” button in the left panel to complete the plan. After clicking, a menu indicating the year to select for the system to calculate (or recalculate) plans will open.
The plan is calculated starting in the month following the current one. If the plans were formed before the calculation, their information will need to be completed again.
After recalculation, in order to view plan details, you need to select the month in the left panel. A detailed scan of the plan will then open up in the right panel. In the right panel above you can select to display the sales plan or the purchase plan.
Both for sales planning and purchase planning, prices are determined automatically according to the latest sales or purchasing transactions.
1. Sales plan
The sales plan determines the amount and composition of the planned sale of items. In drawing up the sales plan, the system evaluates the item’s or group’s current projected consumption. Further, adjusting for seasonality, expected consumption for each month is calculated, starting with the month following the current one in the selected period.
During operation, the system allows us to estimate the deviation of actual vs. planned sales in a given month. If necessary, in case of a strong deviation from the plan, a notice will be generated informing you that the actual sales volume is less than planned. This will allow operational managers to take action.
2. Purchase plan
The purchase plan determines to the items purchases necessary in the future. To generate a purchase plan for each day and until year’s end, based on the existing settings recommendations for tools and settings used in the IMS are calculated. In each subsequent month, the purchase plan for the previous month is accounted for.
The system practically creates a model based on the principle “what if the recommendations were to be calculated in 20 days? What about 21 days (etc.)” recommendations are calculated for each day. If the item needs to be ordered, the system will remember this and adjust its further operation as if the item was ordered and arrived within the exact turnaround time. In this way, a set of prospective orders per month will be the purchase plan.
Similar to the sales plan, the system allows you to evaluate the deviation of actual purchases vs. planned purchases in a month. If necessary, with a strong deviation from the plan a notice will be generated that actual purchases from the supplier are less than planned. This will allow the manager to take action.
3. Model of usage
The planning module involves tracking deviations of the actual state of affairs in the company from the plan.
1. It is essential to formulate plans for future periods
2. A monthly plan can either be printed out or exported for further work
3. In pro-active mode, the system will analyze the daily deviation from the plan each day and send a notification of the deviation to a user-specified e-mail address (including the goods that deviate from the planned indicators). In active mode, you can go to the section plan and track to what extent each of the planned items do not match the expected value.
4. Based on the result of the deviation analysis, you will need to take administrative measures. In case of a deviation downwards: increase sales and hold a marketing campaign. In case of positive deviations: adjust the purchasing plan for the future. And so on.