Procurement Planning
Along with a best estimate of future demand, your enterprise needs to align with an accurate forecast of future supply to:
- Reduce material costs
- Lower transportation costs
- Improve speed to market
- Mitigate supply chain risk
Key Challenges
Insufficient forecast accuracy - Customer behavior is often erratic and without reliable demand data from within and outside your organization, it is difficult to generate an accurate supply plan
Seasonality and demand spikes - Overlooking seasonal inventory requirements or new trends results in a strain on your suppliers
Increasing customer expectations - You rely heavily on supplier performance to align with your customers’ expectations and demands on stock availability and on-time deliveries
Capabilities
- Supplier calendars
- Requirements calculator
- Prescriptive logic
- S&OP support
Procurement Planning
Your company needs to develop highly effective plans for managing material procurement across centralized and decentralized supply chain networks. Comprehensive Procurement Planning capabilities provide specific support for a variety of challenges; these include long lead-time, low-frequency-high-volume, standing order call-offs, and enforcing dual-sourcing rules. Procurement Planning considers a range of supplier and logistics constraints including:
Procurement minimum/maximum/incremental volume and value
Order and shipping lead times along with frozen time fences and horizons
Multiple calendar support for ordering, shipping and receiving
Replenishment and buying cycles
Dual/multiple sourcing rules
Transportation minimum, maximum, and incremental volumes
Key Capabilities
Supplier’s calendars. Procurement Planning considers your supplier’s capacity to receive an order and deliver an order. This is crucial to avoid stock outs during supplier non-trading periods. Procurement Planning is able to identify the requirements for the non-trading periods and place an early order in anticipation.
Requirements calculator. Procurement Planning can utilize several different replenishment models to determine procurement requirements. These include reorder-point quantity, days of supply and forecast driven. Procurement Planning provides the ability to apply different replenishment models (dependent on SKU characteristics) within the same overall planning model.
Order size constraints. Procurement Planning considers minimum, incremental order sizes that can be applied both at an order and product line level.
Look ahead logic. Procurement Planning ensures maximum utilization of transportation resources by using smart look-ahead logic to partially expedite future requirements into the current requirement to maximize the utilization of a truck, shipping container etc.
Pegging. Costs and orders can be pegged at all levels of demand and supply throughout the planning model.
S&OP support. Procurement Planning automatically makes supply plans and simulated scenarios available to your S&OP/IBP processes for tactical planning.
Future Proof Technology
Cloud deployment. Procurement Planning is available in the QAD Cloud or AWS public cloud. Both options provide a secure, reliable, and extensive cloud infrastructure.
Mobility. The Procurement Planning user experience supports Web, mobile and touch screen user interfaces.
Analytics. As the IoT and machine learning deliver a greater number of data points, supply chain solutions must have a best-in-class capability to translate data into trends and decision grade analytics. Procurement Planning seamlessly embeds capability from Qlik, a leading business analytics provider. This provides an intuitive and intelligent user experience supporting responsive and accurate decision making.
In-Memory. Procurement Planning uses a highly scalable, rapid in-memory data model enabling real time simulation planning and effective decision support.
Integration. QAD DSCP supports integration with QAD, SAP, Sage, JDE, Oracle, Infor, Microsoft and many other ERP and enterprise applications. It uses a data hub approach to exchange supply chain information across the organization and includes a tool for building custom integrations.
ARaymond Redefines Business Processes for Its Supply Chain
The leader in the automotive market achieved greater reliability in forecasts, cost savings and improved collaboration with QAD Demand Planning, Distribution Planning and Production Planning.
JJA Increases Inventory Turnover While Reducing Procurement Lead Times
The home furnishings and decoration company optimizes inventory control with robust Sales and Operations Planning and Procurement Planning.
Maroquinerie Thomas Achieves Greater Flexibility to Keep Up with the Challenges of the Luxury and Fashion Sectors
The manufacturer of leather goods achieves a more flexible, collaborative and efficient supply chain with Production Planning and Procurement Planning.
RAJA Standardizes, Streamlines IT System to Support Growth
The European leader for the distribution of packaging reduces stock coverage by 13% and stock out by 15% while boosting customer service levels with QAD Demand Planning and Procurement Planning.
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