Reducing inventory and satisfying customer demand are high priorities in manufacturing and distribution. Being able to fill orders on time and satisfy every customer is an integral part of order commitment—and a very attainable goal. Advanced planning and scheduling (APS) can help your company become responsive and accurate—and that’s what counts in today’s “demand and supply” environment.
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For chemical producers Akzo Nobel, managing a complex supply chain producing more than 2,000 chemical products was an extremely complex task. Akzo Nobel decided to implement a multi-user sales and operations planning (S&OP) system that would be available company wide. Increasing its forecast visibility raised awareness of critical issues earlier—thus reducing inventory and increasing productivity on a global scale.
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For thermosetting resins producer Hexion Specialty Chemicals, a portfolio of over 50,000 stock keeping units (SKUs) created unique supply chain efficiency challenges. Hexion needed better supply chain management—the key to sustaining growth and profits. In adopting Zemeter solutions, Hexion reduced inventory by more than 20 percent and increased margins—exactly what Hexion needed to stay competitive on a global scale
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For the coffee producer Mother Parkers, scheduling coffee production across two plants was an ever-increasing challenge. Mother Parkers decided to take proactive steps toward consolidating its day-to-day scheduling data by engaging Supply Chain Consultants (SCC) to help. SCC applied its scheduling algorithms to improve schedule attainment, visibility, and stability—exactly what Mother Parkers needed.
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For dried fruit producer Sunsweet, a spreadsheet-based planning system just wasn’t working. After reviewing several solutions, Sunsweet selected the Zemeter supply chain planning suite to eliminate the repetitive work involved in spreadsheet management. Zemeter’s accurate forecasting and planning process ended up saving Sunsweet money by increasing production line efficiency and reducing overruns by 18 percent.
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For cheese producer Mozzarella Fresca, producing multiple products was a scheduling challenge, and it needed a solution that could do more than Excel-based tools. The Zemeter Scheduler solution was able to add 15 percent capacity by optimizing scheduling processes. In fact, from molding to packaging, Zemeter Scheduler increased efficiency without Mozzarella Fresca needing to invest in new equipment.
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Forecasting and planning conventions dictate that planning far into the future is a necessity. But is long-term planning really the most productive way to organize your business? No, not really. Detailed forecasts and plans are needed only inside the “planning time fence”—a critical period for acquiring specific components and building certain products—and for many companies, only four to eight weeks into the future.
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For businesses to respond quickly to customer demand, timely metrics need to be supported. Monthly metrics can provide guidance on modifying the planning process and tactical plan, but there’s more to it than that. By monitoring daily fluctuations, early warning signs can be detected to indicate possible performance issues. Combined, metrics and monitoring can help you effectively manage your supply chain—proactively.
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Improving the supply chain is essential for any company that wants to gain or maintain a competitive edge. To do this, companies are adopting sales and operations planning (S&OP) strategies. Years ago—when the pace of market change was slow—S&OP was a nice-to-have; today it’s a business imperative! But it doesn’t have to happen overnight. By taking a five-step approach, companies can implement S&OP at their own pace.
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