Supplies optimization (SO99 + Replenishment DRT)

Advanced Replenishment Planning


SO99+ Replenishment automatically generates timephased replenishment and purchasing proposals, respecting factory lead times, initial allocation quantities and follow-on allocation plans.


It accurately factors in both internal deployment plans (between distribution centers, warehouses and stores) and outstanding orders from suppliers. In the face of changing seasonal demand or promotions, it generates pre-orders that reflect constraints such as warehouse storage space, transportation (full truck-load) capacity or product perishability requirements (expiration).


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SO99 + Replenishment automatically generates proposals for sourcing or manufacturing taking into account previous planning steps: demand, stock and service. Plans provisioning across the network of distribution, taking into account physical constraints which may be for each sku. To calculate the DRP, firstly, is necessary to define the logistical network that can be composed by factories, warehouses, distribution centers, etc. Within the supply chain, the supply may be centralized (if a supplier delivers the goods in a single point) or decentralized (if delivery is at various points).


SO99 + Replenishment allows you to organize the replenishment across the logistics network managing orders properly and releasing purchase or manufacturing orders grouped according to the various restrictions of the suppliers and factories and different optimization criteria. It takes into account different usual cases, as, for example, group orders for minimum/maximum quantity, by supplier, by source, by optimization of containers/trucks.


The DRT (Distribution Requirement Tunneling) calculates in aggregate form the maximum and minimum needs with temporary depth curves. This aggregation of needs of sku-location, performed under the criteria of making or buying for the nodes of the top level of the distribution network, or transporting for lower level nodes, allows cuts by capabilities (either production or transport).


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The Master Plan generated may be contrasted with the capacity available to ensure their viability. In case that de need it must be greater than the declared capacity, the user has different alternatives to resolve the conflict: a) to advance production to lower load periods; b) to increase the capacity, by adding shifts, overtime or subcontracting operations;  c) reduce lot sizes. In any case, simulations are required to analyze the different future strategies in this regard. SO99+ Replenishment includes verification of capacity as a functionality to be used where required.


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SO99+ Replenishment automatically identifies situations where, within the period of exposure to risk, the current Master Plan leads to elevated risks of breakage or over-stock. In these cases, the intervention of the Planner has capital importance, moving it from being a mere executor to a true Manager of provisioning.


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Inventory optimization (SO99+ Inventory)

Inventory Optimization


For business-line managers who need to solve inventory problems fast:
Wrong Inventory Mix or Unacceptable Service Levels


Many inventory planning approaches aren’t well suited for companies with challenging distribution problems. As a result, you may not have an efficient inventory mix. Or perhaps you aren’t consistently hitting target service levels. So you want to get beyond simple ABC inventory analysis to improve your inventory/service trade-off. And you want best inventory practices without breaking the bank.


An Affordable, Cloud-based Approach


ToolsGroup’s Inventory Optimization service combines modern cloud-based technology with two decades of domain expertise to help you optimize service levels and inventories.


Inventory target setting delivered as a low-cost outsourced service liberates you from the expense, time and risks of implementing systems and processes on-premise. With our secure cloud-based portal, you simply upload data and retrieve inventory recommendations to your desktop. Item-Location level inventory targets, such as safety stocks and reorder points, are available for a low monthly fee.


Optimizing the Entire Item-Location Level Assortment


Unlike most inventory approaches, ToolsGroup’s advanced inventory modelling and optimization engine doesn’t just independently calculate inventory targets for each isolated item. It globally and simultaneously optimizes your entire assortment of Item-Locations. It reliably handles both fast and slow movers, even for very high service levels (up to 99+%).


• It can also handle multi-echelons, finding the most globally efficient balance between upstream and downstream inventory.


• It can perform service level optimization, replacing “one size fits all” service level targets with a mix of different service targets.


• And it can simultaneously optimize safety stocks and cycle stocks.


The Right Inventory for Target Service at the Lowest Cost


Whether delivered either as a low cost cloud-based inventory target setting service or via hosted or on-site software, this inventory modelling is highly automatic with extremely low cost of ownership. Yet it routinely generates million dollar ROIs via increased customer service levels, reduced stock-outs and improved inventory turns.


As part of an inventory optimization project or an S&OP improvement, our inventory mix optimization puts the right buffers in place to guarantee target service levels at the lowest cost. It enables you to deliver competitive and sustainable customer service levels with less inventory. It generates a quick ROI, typically 30-40% inventory improvements and/or service level increases of several per cent


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Demand Forecast (SO99+ Demand)

For forecast process owners who need a reliable forecast, despite demand volatility


Dealing with Random, Variable and Intermittent Demand


To make smart operational decisions, you need reliable forecasts. But if you are like many companies, you are dealing with a lot of random, variable and intermittent demand. You can’t get the forecast accuracy you need to manage and respond properly. And the process of translating your aggregated sales forecast into an operational supply chain forecast at the customer (Item- Location) level can be onerous and time-consuming.


You need a major improvement in forecast reliability. Incremental improvements just aren’t good enough. You need to produce accurate and reliable forecasts at the customer level that your account managers and supply chain planners really trust to improve their processes and outcomes.


Addressing Intermittent and Unpredictable Demand


ToolsGroup’s Demand Forecasting goes well beyond a standard time-series to automatically model bottom-up demand for individual products/SKUs in great detail. By analyzing order-lines, it models both historical demand quantities and demand frequency to provide a much clearer view of volatility. For instance, it understands the difference between a bulk order of 12 units and selling that same product individually 12 times.


It expertly handles intermittent “long tail” demand for slower moving products that are inherently harder to forecast. It understands volatility drivers, both market (trends, seasonality, causal factors and lumpiness) and organizational (demand shaping promotions, new products, forecast bias and the bullwhip effect). And it’s both highly automated and uses readily-available data.


Reliable Item-Location level forecasts


What does that mean for your business? An end to poor item-level forecasts. ToolsGroup’s Demand Forecasting creates a demand pull signal, significantly reducing forecast errors (e.g., MAPE). Many of our customers are achieving 85+% forecast accuracy at the DC level. And it creates a reliable demand plan to support the account planning and your S&OP process.


ToolsGroup’s Demand Forecasting also overcomes the disconnect between sales/marketing and the supply chain group by eliminating the forecast errors at the Item/Warehouse level. It automates the forecasting process at the level of granularity required for supply chain planning and execution.


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Supply chain advanced planning

Accelerating Business Performance through Market-driven Demand Analytics and Supply Chain Optimization


Tecsidel solutions for Advanced Supply Chain Planning, based on ToolsGroup’s “Powerfully Simple” software, deliver improved business outcomes in complex demand-driven environments. Tecsidel helps companies accelerate their business performance through market-driven demand analytics and supply chain optimization. We leverage quantitative and qualitative data to deliver predictive demand signals and enhance the effectiveness of the planning process.


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We help deliver improved business outcomes in complex demand driven environments. We leverage quantitative and qualitative data to deliver predictive demand signals and enhance the effectiveness of the planning process. Our supply chain planning and demand analytics solutions seamlessly integrate to a wide variety of ERP platforms such as SAP, Microsoft Dynamics and Oracle, and link to Execution Operation Systems like SEGA WMS.


If you are a demand and supply chain planning executive who has important shortcomings in your planning process, Tecsidel offers a significantly better approach to supply chain planning. Whether you can’t get an accurate detailed forecast, inventory levels aren’t optimized to guarantee a high service level, or your planners are spending all their time trying to build a statistical forecast; we can help. We are a committed team that helps you accelerate your business performance. We can help you achieve a reliable statistical forecast, service level optimization, and increased planner productivity. All at a price and overhead cost you can afford; even delivered as SaaS.


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Your operational performance depends heavily on margin attainment and asset utilization. For margin improvement, our unique “Trade Promotion Optimization” tool provides you the analytical tools to truly optimize the effectiveness of your marketing spend; from trade promotions to media events and social media. For asset utilization, if a significant portion of your capital is tied up in inventory, we can help improve your key ROIC financial metric. Our “Inventory Mix Optimization” tool puts the right buffers in place to enable you to deliver competitive and sustainable customer service levels while generating a rapid (typically 20-40%) inventory improvement.


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Surrounded by an explosion of valuable data, most forecasting systems have no way to take advantage of it. Businesses complexity is growing, driven by multi-channel marketing, demand shaping (media, promotions, NPI), and other factors. ToolsGroup leverages a fundamentally different approach to tackle these more challenging environments called “Demand Modeling”. It brings a new level of automation and machine intelligence to the planning process.


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Too often demand collaboration simply means sharing the responsibility for a bad forecast. Demand Collaboration Hub (DCH) creates forecast accuracy statistics for each data source, providing an objective basis for continuous improvement by assigning more weight to sources that provide more accurate forecasts.


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Demand Sensing allows you to incorporate detailed short-term demand data into your forecasts to reduce forecast error and optimally deploy inventory. Downstream data, such as customer and channel data, is employed to identify demand trends, provide advanced warning of problems, and remove the latency between plan and what is really happening in the supply chain. The quicker deviations can be identified, the quicker and more intelligently a company can respond.


{slider-clave Inventory Optimization}


Inventory Optimization is uniquely capable of managing slow movers and long tail items and is also ideally suited for companies targeting high customer service levels. Unique statistical demand and inventory models reliably describe the relationship between inventory and customer service, identifying the right inventory mix to truly deliver customer service targets. And rather than assign the same “one size fits all” service level target to all SKUs in a group, Service Level Optimization assigns different service targets to each individual SKU-Location, further driving inventory savings while still achieving the same overall service level mix.


{slider-clave Sales, Inventory and Operations Planning (SI&OP)}


By injecting a much higher level of automation and intelligence into your planning process, our Powerfully Simple technology enables an entirely new approach to S&OP. Think of it as S&OP “at the press of a button”. With the grunt work out of the way, your team is free to focus on what they do best – finetune the plans using their market and business knowledge.


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Our powerful machine learning technology makes it possible to recognize the shared characteristics of promotional events and identify their effect on normal sales. It extracts knowledge about which variables most impact demand and produces a set of simple intelligible rules, easily understood by the user.


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