Supply Chain Solutions > Replenishment Planning
Techatalyst has partnered with one of the leading supply-chain solution companies to
provide an SCM solution that offers out-of-the-box integration with SAP
Most businesses in the make-to-stock (standardized products) category focus on creating an execution system that is able to respond quickly to the demand generated, while minimizing stocks through the supply chain.
The key question that confront the planners is that the system only needs to trigger replenishment at the stocking location when there is an unmet demand, as the objective is to minimize inventory at the same time maximize service level.
Across a supply chain the solution sets execution triggers. The replenishment triggers are created through automated procedures that take demand /consumption and create automated replenishment recommendations. These auto-triggers are based upon the keeping automatic track of stocking locations through the supply chain – and replenishments triggered when the stocking location falls below a preset level.
Business Benefits
- Time Phased Planning horizon allows for effective communication to vendors to reduce the need for expediting orders.
- Negotiate next year’s volumes at this year’s prices is a direct business benefit.
- Time Phased Planning assumes the client orders what they want. The system re-plans daily, or multiple times a day, keeping supply and demand in balance, avoiding shortages, ensuring suppliers, distributors, and manufacturers (the supply chain) are synchronized. All this is done while meeting the all-important on time delivery metric with minimal inventory
- Avoid stock outs. Safety Stock or Safety Time provides a buffer for the inevitable demand that exceeds supply.
- The entire distribution network is planned on an inventory pull basis with priorities assigned for full truck, rail, or container loads. This helps transporting prioritized or critical product on each shipment
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Replenishment Planning Features
- Planning is supported by numerous replenishment rules including:
- Lot-for-lot
- Minimum order quantities
- Order multiples
- Maximum order quantities
- Period order quantity, etc.
- Safety time is a variable safety stock increasing the safety levels in periods of high demand, and reducing levels at the end of a season
- Planning can be performed at the retail store or door level, or for cross docking at the retail distribution center
- Suppliers to retail can plan through a Vendor Managed Inventory (VMI) process to ensure that the needed merchandize is on the shelf when clients seek the product.
- Bill of materials supports supplying kits to retail or planning components for production. This supports the ultimate goal of a balanced inventory.
- The distribution network can be a hub-and-spoke, hierarchical, or any replenishment structure
- The solutions support distribution planning, kits, Bill of Materials, and Bill of Distribution with unlimited number of planning levels
- The planner is provided with a handy list of action items that require immediate review