Have you come to the conclusion that your company needs a supply chain planning system? Do you need to provide management and other key decision makers with reasons why you need a supply chain planning system? One way that a supply chain planning system can help you is by enforcing best practices and processes. Get more details on this and 10 other reasons why you should implement a supply chain system that works for you.
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Business plans need to be built on a foundation of solid intelligence: knowing what’s coming means you can plan responses proactively. Thus, in order to build a solid sales and operations plan, constraints through the entire supply chain need to be considered. Improving operational efficiency requires that you have the right inventory, in the right quantity, at the right time.
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Pulse is a global leader in the design and manufacture of electronic components. With its far-flung design centers, manufacturing facilities, and customer care centers, Pulse sought to adopt a global supply chain management strategy, integrated with demand planning and manufacturing operations. The benefits, Pulse reasoned, would include faster order response time, lower inventory costs, and more intelligent planning and scheduling.
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Iwate Toshiba, a semiconductor fabricator, sought a supply chain solution to resolve recurring production issues. The solution had to be capable of quickly planning and scheduling lots during peak production, providing accurate order commitments, reducing planning cycles for production, optimize use of production resources, and achieving a more accurate supply chain model by integrating business planning with factory-level scheduling.
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Switzerland-based Firmenich has been researching, studying and creating fragrances and flavors for more than a century. As part of an ongoing project to cut cost and increase throughput and margins, Firmenich sought a supply chain management application to eliminate information silos and automatically address other issues such as excess inventory, load imbalances, customer service, forecasting, and other, potentially expensive inefficiencies.
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In theory, demand planning is the foundation for profitable operations. But in practice, it is often a difficult endeavor. Accuracy can fluctuate wildly, and companies tend to react to inaccuracies with new investments in technology, processes, and people. However, new investments do not guarantee better forecasts. There are often fundamental issues that need to be addressed before achieving positive results.
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In 1988, Gulistan Carpet, one of America’s leading carpet producers, implemented a custom enterprise resource planning (ERP) system to understand its business planning issues. But management soon realized this was not enough, and wanted to find a way to link this information with actual plant floor production operations at its three main plants. For a solution, it turned to Adexa, Inc.
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The markets served by Hindustan Lever Limited (HLL), India’s largest consumer goods company, require flexible planning, production, and distribution scenarios on the manufacturing side of operations. In 2000, HLL identified improved supply chain management as a critical business priority. It sought a solution that would increase supplier and distributor responsiveness, reduce inventory buffers, and optimize planning and scheduling.
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Responding immediately to product availability requests with accurate delivery dates, and following through on commitments, is critical to serving the customer base. Improvement in this area will impact the bottom line through higher customer satisfaction, and decreased costs for goods sold. It is especially critical for enterprises to manage supply commitments to customers when products need to go on allocation.
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Companies face stiff competition driving products toward commoditization, resulting in prices being squeezed. To fight this trend, sales and marketing want to offer more products. The downside of this strategy is that higher costs associated with product proliferation heavily erode the bottom line. However, there is a strategy that lets companies resolve this dilemma, and it’s called attribute-based product management.
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Despite its success and profitability, Samsung’s network division—operating in a rapidly changing, highly volatile sector of the technology industry—nonetheless faced a continuous series of internal manufacturing challenges. In 2000, recognizing that it faced multiple opportunities for improvement, Samsung initiated a strategic campaign to revamp its supply chain management efforts. It turned to Adexa for a solution.
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