For a manufacturer, the goal of effective supply chain planning is to meet your customer requirements and balance production resources whilst maximising revenue and profit.
Customer orders and forecasts provide visibility of what customers want to buy. In a complex manufacturing environment, the challenge is to fulfill that demand on time and in full whilst simultaneously optimising your capacity and inventory.
Many organisations focus on short-term scheduling and expediting in order to fulfill customer requirements. They get orders out of the door on time, but at what cost? Paying for overtime, premium freight for urgently required components, un-economical batch sizes and constant disruption to the plan. This cycle of fire-fighting not only reduces profit but limits their ability to capitalise on new sales opportunities and product launches. Put simply, they do not know if their supply chain can cope with any additional customer requirements.
Best In Class manufacturing organisations know that effective Production Planning is the key to achieving this combination of outstanding customer service and optimisation of resources. Creating a robust and achievable plan by using the right tools and planning techniques puts them firmly in control of their supply chain planning activity.