Existing Planning Process in India

• Demand planning is done manually and forecast is arrived at respective locations

• Advanced Supply Chain Planning (ASCP)
• ASCP is primarily used only for supply planning (procurement)
• Planning process is run separately for FDF and API Division
• FDF division uses separate demand plans for
• Procurement of Excipients with long lead times > 90 days
• Only forecast quantities are considered
• Procurement of packing material and API with short lead times < 90 days
• Only sales order quantities are considered
• Forecast plans for FDF division are uploaded by India BD & EU Entities PPIC, Germany and Netherlands in
ASCP within the specified timeframe every month
• FDF PPIC prepares manually a 6 month rolling forecast of API requirement and sends it to API PPIC
department
• API PPIC receives yearly sales forecast plan from API BD team and 6 month rolling forecast plan from FDF
division and consolidates the forecast demand and arrives at Plant wise demand forecast before uploading
it to ASCP
• Planner in both API and FDF release purchase requisitions as per planning suggestions. On release system
auto creates purchase requisition in approved state in ERP
• Purchase department auto creates Purchase order as and when purchase requisitions are available
• Plan visage is used by API units for production scheduling (still under trial run)
• Module wise firm orders are prepared by PPIC department manually and uploaded in plan visage for
production scheduling duly considering availability of raw material and packing material and resources
• Observation on current process
• 6 month rolling forecast is loaded in ASCP and Planner releases Purchase Requisitions as per planning
suggestions
• When rolling forecast is revised and loaded in subsequent months by changing forecast quantities
planner is not implementing planning suggestions given by ASCP for
• Cancel of Purchase Requisition and purchase orders released and created earlier in excess quantity
based on previous forecast and which are no longer necessary
• Reschedule in or reschedule out existing purchase requisitions and purchase orders to bring it in
tune with revised forecast
• Consequently procurement is done even when forecast quantities are changed and material is no longer
required as per revised forecast
• Actual production scheduling uses a firm order quantity which is completely different from forecast
quantity against which procurement is done
• No effort is made to track and identify the forecast source against which the procurement was initiated
and received and reasons for change in forecast subsequently
• No analysis is done for variation between forecast and the actual orders received from customer and
correct the forecast planning method / assumption applied. FDF Demand planning team is doing
analysis
Current Planning Process in US
• Vangaurd application is used in APUSA for demand planning
• 3 year historical sales data is interfaced from ERP to Vangaurd considering specific order types
• Item Master and Customer master are interfaced from ERP
• Vangaurd provides 15 methods of generating demand
• Forecast/ Demand is validated and calculated with appropriate method and user overrides the demand if
required based on new opportunities identified etc.
• 1 year rolling forecast is generated and interfaced to ERP
• Forecast is generated weekly and interfaced to ERP
• Demand planning is manual in Auro-life and Auro Health and it is uploaded as forecast in ERP

• ASCP is used for supply planning which is run daily.

• Planner reviews the planning suggestions and releases Requisition
• PR is auto created in approved state and PO is auto created in incomplete state
• Users have option to modify quantity at PO level
• Once PO is approved it will be interfaced to APL India

Periodically user reviews Forecast Vs Actual orders Vs Shipment

Wherever needed request for change in Schedule ship dates / need by date will be made based on actual orders