Procurement Planning enables organizations to become an effective enterprise by facilitating best-in-class procurement activities all along the supply chain. Procurement Planning calculates order and delivery schedules based on forecast requirements, inventory policies and logistics constraints and plans the supply of raw materials, packaging, other materials and finished products.
Value and Benefits
Planning and Optimizing
The calculation of the Master Procurement Plan adds value by optimizing different processes such as:
- Sales and Operations Planning (S&OP) to anticipate the need for critical components and provide strategic insight with key suppliers
- Finished goods purchasing directly from suppliers based on forecasts
- Creating requirements for components using a MRP calculation
This analysis can be done on a planning horizon that is totally user configured according to the requirements of the organization (days, weeks, months, years or even a mixture of granularity for short and long term planning).
To create an accurate procurement plan, Procurement Planning takes into account supplier and logistics constraints including:
- Minimum/ maximum deliveries
- Safety stock and maximum inventory
- Lead times, calendars and frozen horizons
- Minimum and multiple orders quantities
- Transportation capacities
Manage the Complexity of your Supply Chain
The Procurement Planning solution allows companies to calculate and optimize procurement plans. Users are able to choose the right strategy according to their Supply Chain complexity. For example the calculation of a single requirement for each item but also by grouping orders to fill up transportation modes (e.g. full trucks) or even run a cost based optimization.
The standard functionality of the Procurement Planning solution allows companies to develop an optimum procurement plan. The system enables companies to:
- Group orders to optimize transportation
- Optimize the choice of its suppliers according to different criteria such as availability, costs and different procurement lead times
- Minimize the total of all costs (inventory, purchases and orders)
- Calculate a batch size based on Economic Order Quantity (EOQ)
- Manage priorities for suppliers and products
- Reduction of purchasing, delivery and storage costs through optimized planning
- Improved customer service levels with increased product availability resulting in less stock-outs
- Stock reduction throughout the supply chain due to better calculation of supplier safety stocks and optimal delivery plans
Download the Procurement Planning brochure.