More businesses are realizing the value of the data they generate day-to-day. One key area is optimizing the flow of materials in your operations. With this insight, you can be more proactive in your planning and execution, better positioned to anticipate market fluctuations, and respond more quickly to your customers’ needs.
Comprehensive, cloud-based supply chain planning (SCP) includes sales and operations planning (S&OP), distribution requirements planning (DRP), and master production scheduling (MPS)—and the long-term benefits are too good to pass up:
1. Retaining customers.
Your goal is to consistently meet your customers’ needs time and time again to ensure sustainable profitability. Because you can’t see into the future, you’ll need to do the next best thing.
Integrated demand forecasting and scenario modeling in your supply chain planning enables you to be ready for spikes in demand. You also minimize your chances of getting caught in a stock-out when your customers need you most.
2. Increasing your agility and efficiency.
Your toughest competitors gain their edge by knowing exactly what they can promise to customers at any given moment. Just as importantly, they’ve also determined acceptable levels of customer service, so that they always know what they’re aiming for.
Make sure all your supply chain processes help you work towards your desired customer service levels, and give your planners the tools to maintain real-time insight into your inventory levels and demand signals.
3. Keeping costs down.
When you optimize all aspects of your supply chain planning, you can produce a realistic view of how much inventory you’ll need to fill customer demand. That means lower inventory costs, less overtime, and less rush shipping costs.
4. Maintaining competitiveness.
When it comes down to day-to-day execution, you’re most focused on keeping costs down and turning inventory over as quickly as possible. If you can’t do that, products may end up sitting in the warehouse.
With better supply chain planning, you gain greater control over your flow of inventory. You have inventory on hand to meet specific customer demands, rather than furiously trying to drive demand through discounts. All of this leads to increased profitability.
Discover even more benefits from comprehensive, cloud-based supply chain planning. Download the infographic: Attain Peak Supply Chain Performance.
