Supply Chain Planning
Boost your profitability with comprehensivesupply chain planning
All activities, organisations, people, resources, technology and information involved in transforming a natural resource into a finished product that is delivered to the end customer, forms part of the supply chain. Putting together a supply chain for a specific company that follows the moving of its product or service from supplier to customer is relatively easy. Adequate supply chain planning, however, often seems to be in short supply. Ineffective planning can cause many significant problems for a company and can directly be linked to a decrease in efficiency and profitability. So how do you know your supply chain is up to standard?
In order to do proper supply chain planning it is imperative for you to have the ability to accurately forecast what the demand for your product or service will be in the near future. The objective of your company is to operate at a level that maximises profitability. To achieve this, you have to find a balance between supply and demand. If the supply is too high, you will end up with unwanted product, potentially creating unnecessary losses. If the demand is higher than the supply, you might end up losing potential customers, or incurring extra cost due to last minute additional materials needed and overtime paid to meet the demand. These potential losses and extra costs will obviously reduce your profits.
It is, without a doubt, clear that a thorough strategy should be a critical component of your supply chain planning. Without it you run the risk of minimising your revenue unnecessarily. Even more damaging in the long run, is that you stand the chance of straining relationships with suppliers and distributors by putting them into difficult situations. You could also possibly lose current and potential customers, costing you market share.
Business Modelling Associates presents a solution – Enterprise Optimizer®. It offers companies an unprecedented opportunity to truly improve their operational performance. Enterprise Optimizer® is used to optimise supply chain networks, rationalise capacity, allocate production and raw materials to manufacturing plants, schedule shifts, optimise staffing and improve logistics performance. With Enterprise Optimizer®, a company can accurately represent its value chain end to end - from the supplier’s supplier to the customer’s customer. Visit businessmodelling.com for more information.
