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Process Owner(HQ's, Subs') : (S)SCM AP1 P/L,(S)SCM AP2 P/L,(S)SCM P/L,(S)SCM Sec.H,(S)Sales Dep.H,(S)Sales
Sec.H

I. Definition

□ Through collaboration with channels, receive and analyze Sales Forecast, Order Forecast, POS, and Channel
Inventory data in order to sense/detect actual market demand.

□ Based on actual market demand, reflect channel information into AP1 forecasts

II. Purpose

□ To minimize loss of sales opportunities and to reduce obsolete channel inventory by reflecting channel information
received from customers to demand forecasting.

□ Through automatic reflection on AP1, secure Customers’ Forecasts and Order Visibility in order to improve forecast
accuracy and to stabilize supply.

III. Policy

□ (SEC) For CPFR customers with order forecast accuracy of 60% or above for the past 3 months, automatically reflect
their order forecasts in AP1 forecasts at the request by Subsidiary.

□ (SEC) For CPFR customers but not reflected automatically on AP1 shall be linked to Customer Forecast Row in
GSCM.

□ (SEC) For Non CPFR customers with average order forecast accuracy of 40% or above for the past 3 months,
automatically reflect their order forecasts into AP1 forecasts at the request by Subsidiary and then adjust AP1 forecasts.

IV. Check point

□ Confirm weekly ratio of distribution data acquisition from collaborative channels.

□ Review weekly channel information input rate of collaboration customers.

□ Review weekly order forecast accuracy of collaboration customers.

□ Review weekly Sales forecast accuracy of collaboration customers.

□ Check whether order forecasts of customers with order forecast accuracy of 60% or above for past 3 months are
automatically reflected on AP1 forecasts.

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□ Check whether non-collaboration customers’ excel-format PSI data obtained or downloaded from Web is uploaded to
GSBN.

V. Procedure

Step 1 : Collaborating with Customers and Receiving Channel information

- Who : Sales Person

- When : Weekly

- Ref :

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Receive channel information on a weekly basis through collaboration with customers

1) Receive weekly channel information and automatically reflect data on GSBN or 2) Upload obtained distribution data to
GSBN directly

Step 2 : Use ref. data for AP1 demand forecasting

- Who : Sales Person (AP1)

- When : Weekly

- Ref :

In terms of API demand forecasting for channels from which channel information is not received, demand forecasting is
performed by using reference data such as GSCM UI, etc.
Modify and finalize AP1 forecasts on SCM Day with AP2

Step 3 : Analyze channel inventory and sell-out information based on customer

- Who : Sales Person

- When : Weekly

- Ref :

Set target WOS by customer

Forecast sell-out volume for upcoming week reflecting marketing plan (promotion, price change, etc.)
Calculate sell-in volume based on future sell-out volume and target WOS
Finalize demand forecast by comparing and analyzing calculate sell-in volume and customer order forecast

Step 4 : Link to Customer Order Forecast Row in GSCM

- Who : Sales Person

- When : As needed

- Ref :

For customers that fail to meet criteria for auto-reflect in AP1 forecasts, they shall be linked to Customer Forecast Row in
GSCM.

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Step 5 : Auto Reflect Order Forecast to AP1

- Who : Sales Person

- When : As needed

- Ref :

For CPFR customers with order forecast accuracy of 60% or above for the past 3 months, their Order Forecasts will be
reflected automatically in AP1 forecasts at the request by Subsidiary

Step 6 : Monitoring and Improvement

Sales Person, SCM

- Who :
Manager/coordinator

- When : Weekly

- Ref :

Monitor channel information input rate and accuracy of Customer

For customers with poor performance with low channel information input rate and accuracy, apply change and manage
improvement

VI. Approval

□ Confirm AP1

Order Drafted by Approved by Agreed by Notified to

1 (S)SCM AP1 P/L

Subsidiary 2 (S)Sales Dep.H

3 (S)Sales Biz.Mgr

VII. Reference

□ GSCM UI Demand management User Manual (Global Ad Hoc)

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□ (SEVT)GSCM UI Demand management User Manual (Global Ad Hoc)

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