demand planning for inventory and capacity utilization
Post on 15-Jan-2017
280 Views
Preview:
TRANSCRIPT
Demand Planning for Inventory and Capacity Utilization
8th Express, Logistics and Supply Chain Conclave
My friend want to say something“The more Inventory we have the better we can respond on
our customers ”
“We offer our clients 100 % availability of products at any
time and place, irregardless the costs(Which we don’t know)”
My friend want to say something
“We do not have a clue what our customers demand in the future”
The quantities of products we produce depends on maximum usage of our
manufacturing Capacity
Top Supply Chain Management Areas targeted for Improvement in 2014
Supply Chain Visibility Supply Chain Collaboration Sourcing/Procurement0%
10%
20%
30%
40%
50%
60%
70%63% 63%
53%
41%
51%
43%45%
36%
43%
Best in Class Industry Average Laggards
Data Source : Aberdeen Group, November 2013
Effective Demand Planning
Sourcing/ Procurement
Supply chain Collaboration
Supply chain Visibility
Demand Planning
Demand Planning Major steps of Checklist
1.Get the Right Information
2.React Faster
3.Bridge the Divide
4.Understand the Impact
Get the Right Information Create and Manage Forecast
• Create and manage forecasts at, or as close as possible to, individual stock-keeping units (SKUs).
Create a consensus forecast. • Ensure that you capture and consolidate forecast input from all the
necessary disparate sources Establish supply chain visibility into your multi-
enterprise, multi-tier supply chain.
React Faster Update forecasts more frequently.
• In an environment of high variability, traditional monthly planning cycles do little to provide accurate direction from a daily perspective.
• A reconciliation of supply and demand plans needs to be done on a more frequent basis.
React Faster Become exception-driven.
Clear operations performance thresholds and activate an alerting process
Automated solutions can sift through all the activities, uncovering the truly important information and understanding the domino relationships and cumulative effects of multiple events.
Shortening the time to know about a problem drives faster response and reduces the magnitude of any impact
React Faster Respond immediately to reduced or cancelled demand. • It is critical that companies react to unplanned cancelled
demand with equal fevour as when trying to meet an unexpected new order.
• When the customer cancels an order or reduces forecast, many times the customer service representative (CSR) removes the order and that's the end of it.
Bridge the Divide Knock down the internal silos. • Ensure that demand and supply are looked at together - by
everyone.
• Individual groups need to take a more holistic and real-time view of the interdependencies. A key part of this process is the ability to simulate various demand-supply scenarios and their associated action alternatives to increase preparedness for the various possibilities that may unfold or have unexpectedly taken place.
Bridge the Divide Increase customer collaboration.
• Determine which customers represent the bulk of your business, which customers exhibit the largest or most frequent changes in demand, and which customers provide you with the most profit.
• Demand co-planning. :The basic notion is that you need to move from a handoff process to a collaborative one, where you and your customers are collaborating more regularly on their demand requirements.
Understand the Impact
Align Demand Planning
Align demand management decisions with the operations performance metrics of the company
Demand Planning And Inventory
Service Level
Return On Inventory
Effective Demand Planning
Lower Inventory carrying cost
Measure and Improve Forecast Accuracy
Reduce Cycle Times
Improved Inventory Visibility
Benefit of Effective Demand Planning on Inventory
• Improve on-time delivery performance.
• Lower inventory levels while increasing inventory turns.
• Reduce inventory obsolescence.• Reduce cash-to-cash cycle times.• Improve profitability.
Questions if any
Thank You For Your Time And Consideration.
top related