Supply Chain Design

Planning

Supply Chain Design / Planning

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The basis of effective supply chain management is optimal strategic planning paired with the design of an efficient supply chain. In this context decisions are made about the assignment of orders to suppliers, best locations for production and direction of logistics. The design and detailed planning of the logistics network in particular allow the company to identify and implement the best strategy in a constantly changing market to successfully launch new products and be prepared for new emerging market segments. In the following chapters we explain how important changes can be made to the supply chain design:

Sales and material requirements planning

Sales and turnover planning requires accurate forecasts, which can be created by using the different business functions included in one of the modules available for supply chain design. On the basis of historic sales figures, casual factors, including events like marketing campaigns, market data and sales targets, the sales and material requirements planning functionality calculates the quantity of raw material that must be made available by suppliers and to production plants to ensure that the market demand can be met. Data from Procurement and Production as well as distribution and logistics channels are compared with the projections to obtain a realistic forecast that enables manufacturers to create accurate procurement plans.

Production planning and detailed scheduling

In turn, these procurement plans provide the basis for the design of production and manufacturing in the Production Planning and Detailed Scheduling module. They provide input in the planning for resources and materials as well as information on potential procurement restrictions, and can indicate when large orders are necessary and in what sequence, when improvements to the production line are due as well as accurate component planning for batch production. For predefined campaigns, the system can optimize planning and campaign processes by using SPM’s Push Production and Block Planning.

Distribution resource planning

Once goods have been manufactured and produced, distribution resource planning can be used to optimize the production of the right quantities as well as the way in which distribution channels work. This has the effect of improving the distribution of the merchandise in supply chain design and thereby reduces the risk of insufficient product availability and increase in shipping costs.

Transportation planning

With the data now available, it is possible to plan the schedule and route to be followed by each vehicle using transportation planning. The system can take into account all restrictions and conditions, such as the transportation of hazardous goods and refrigerated cargo or express deliveries, and is connected to SAP LES (Logistics Execution System).

Availability planning

The global available to promise (gATP) check can be conducted across all plants and across various stages to verify the status of a product for currently incoming sales orders.

Supply Chain Design

Planning supported by IM&C

IM&C helps customers with the improvement of supply chain design by providing valuable, proven expertise gained from a variety of projects in supply chain planning for different companies and across industry (see also Industries). Additionally, IM&C can support its customers by introducing the GCP Engine, which can fill the gap between supply chain planning and value chain. This results in an integrated group profit planning and profitability analysis based on planned sales volumes.

 

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