With the uncertainty & complex requirements in demand there is a need to have an inventory strategy that balances both lead-time and supply costs.
Tools such as forecasting, material-resource-planning, minimum order quantities mm. are vital to a company’s success in the short and long term, since they provide the foundation to enable smooth operational planning that respond to the market signals.
An inventory strategy that is focused on balancing both lead-time and supply costs will ensure that the customers are satisfied in accordance to their needs, while the costs to provide this satisfaction is within a profitable range.
If a strong strategy is not in place, then businesses run the risk of not satisfying any involved party and can result in financial ineptitude.
Paired with a strategy is a forecast that can help businesses gain the necessary insights into their customer demand both short and long term, while it won’t be one hundred percent accurate it will provide a baseline for operational planning.
The market signal information that can be gained from forecasting models are then connected with MRP, ATP or RCCP setups and are now using the operational signals to make confirmations, releases and follow ups.
The global footprint of supply chains is critical to success and must support the company’s strategy to achieve its goals. Analysing the production setup, distribution network & inventory setup are three key areas as they reveal if the company’s capabilities are fit for market and strategy.
A modern footprint is therefore a balance between multiple factors such as cost, quality and flexibility, but also sustainability and accountability as they are becoming critical-to-success factors.
The end result are processes that work seamlessly between multiple operational functions such as sales, order handing, procurement mm. and further improves on the total value gained by having functions work with each other rather than individually.
Typical deliveries in a PLANNING SYSTEM process with ZCG:
Inventory strategy to balance lead-time and supply costs.
Operation planning – S&OP/IBP – include market signals into your operational decision making.
Aligned MRP/ATP/RCCP setup – trust your operational signals for systematic confirmation, releases, and follow-up.
Integrated, effective, and systematized processes between sales, order handling, planning, procurement, and execution.
By having systems in place that respond to market signals and strategies in place to ensure targets are being met. It reduces the need for over- stocking, capacity and ordering.
Supply meets actual demand
Don’t hesitate to contact us any time
We work with ambitious leaders who want to define the future, not hide from it. Together, we achieve extraordinary outcomes.