Supply Chain Planning & Execution – A Data Driven Real-Time Optimization Approach

The Solution: Our Integrated Supply Chain planning and execution

Having always the latest status of the ERP and CRM System with its holistic data, leads in combination with our ongoing supply chain analysis to highly valuable answers and statements like

• My forecast aligns with both current and future demands
• Forecast improvement for precise accuracy
• Knowledge about bottlenecks that could occur in the future
• Adjustment of the correct amount of the safety stock
• Identification of the best possible order quantities and times
• Assessment of which deliveries are at risk and which sales are affected

BENEFITS OF our REAL-TIME, DATA DRIVEN SCM software

Our proven SCM Execution Software, coming from an intelligent supply chain advisor that uses linked ERP data and AI algorithms to make integrated & automated SC decisions. With improvement suggestions, actions are guided, adjusting the necessary parameters in the ERP system to holistically improve your supply chain KPIs.

Gain following numbers draw right conclusions of

• Improved planning accuracy
• Bottleneck reduction
• Inventory reduction
• Increased transparency on deliveries & KPIs
• Integrated Operations – from customer to supplier
• Increased process efficiency

Initial situation

An Original Equipment Manufacturers (OEMs) in the machinery industry with turnovers exceeding €1 billion often find themselves grappling with a series of challenges. One major issue arises from firefighting activities triggered by supply chain (SC) events. These events, which can range from disruptions in the supply of crucial components to unexpected delays in production, demand immediate attention and resources to resolve.

Another critical concern lies in bottlenecks that arise due to inaccurate planning forecasts. These inaccuracies lead to frequent adjustments in planning, causing disruptions along the supply chain and resulting in issues with suppliers. Consequently, the cycle of planning changes perpetuates, exacerbating the problem and creating a ripple effect throughout the entire production process.

Compounding these challenges is the frequent occurrence of supply chain issues, further compounded by constantly rising inventory levels. This not only ties up capital but also poses operational inefficiencies.

To address these issues, it becomes imperative to identify the root causes behind them, utilizing available data. By pinpointing the underlying factors contributing to planning inaccuracies and supply chain disruptions, companies can enhance planning agility, mitigate risks, and streamline personal planning efforts. This proactive approach not only improves operational efficiency but also bolsters the overall resilience of the supply chain, enabling OEMs to navigate uncertainties more effectively in the future.

Approach / Method

TRANSPARENCY

To successfully address the challenges in the machinery industry, it is crucial to adopt a holistic approach. This involves gaining transparency about future bottlenecks in the production process. By conducting a risk assessment, potential disruptions can be identified and evaluated.

The application of data analytics enables the development of predictive models, allowing companies to anticipate future scenarios and identify potential bottlenecks early on. Through scenario simulations, different courses of action can be assessed, and potential levers for optimizing the production process can be identified.

IMPROVEMENT

Another important aspect is improving inventory levels. By optimizing demand forecasting, companies can better plan their inventory and avoid unnecessary overstock. Additionally, close collaboration with suppliers is crucial to enhancing efficiency throughout the supply chain.

Analyzing ABC/XYZ categories and safety stocks allows for targeted inventory management and helps reduce capital tied up in inventory. By reducing firefighting activities, or short-term problem-solving, the efficiency of the entire production process can be increased.

STRESS-LEVEL REDUCTION

Finally, the implementation of data-driven decision-making and a technology-based approach is paramount. By leveraging data and technology, companies can make informed decisions and secure their competitiveness in the long term.