Distribution Planning enables customers to become effective enterprises by supporting global planning solutions across the extended enterprise. It improves decision-making and optimizes flows of finished goods and components between different sites.
Distribution Planning supports key decision-making processes, including Sales & Operations Planning (S&OP) and distribution requirement / resource planning (DRP). Simulation tools let you look at finished items or product families, with a view of requirements and alternative ways to allocate and strategically redistribute inventory.
VALUE AND BENEFITS
Distribution Planning plans the extended supply chain, managing finished good and component item flows between distribution sites and customers, from storage sites to production sites. Configure how you view the logistics network by site, product, component, period, etc.
Planning covers all flow types: customer flows like jointly managed inventory/vendor managed inventory (JMI/VMI), inter-company transfers, and supplier sourcing. It differentiates flows by request priority (fixed, short-term, stock) and mode of transport. Constraints include channel priorities and openings, timelines and transportation schedules, minimum and multiple shipment quantities, distribution in process and freeze-outs, procurement and production, minimum and maximum stock levels, and use-by dates at each site in the network.
The optimization tools of Distribution Planning offer requirements allocation alternatives, taking into account the channel feasibility and finite capacities of the sites, while optimizing overall costs (distribution, storage and production).
The powerful Sourcing Optimization functionality determines requirements allocation and optimizes supply chain channels to meet requirements, based on available stocks, site production and storage capacities, overall costs and targeted service rate. It uses inventory at production sites and warehouses based on requirements, and on configurable push or pull strategies for receiving sites (customers, local warehouses, logistics providers).
- Improve customer satisfaction with fewer stockouts and better on-time delivery performance
- Reduce obsolescence and wastage with better planning
- Reduce costs (production costs, distribution costs, inventory costs, etc.)
- Increase profitability by better managing costs
- Improve efficiency of the global network
- Increase visibility to allow the determination of the most profitable options
- Collaborate more effectively (internally and externally), and improve anticipation of production and sourcing needs
Download the Distribution Planning brochure.