How can you maximise the return on your supply chain management investment?
APO and other planning solutions can bring a wealth of benefits to your supply chain processes and impact on your bottom line, however many organisations have made the investment in these tools but have failed to unlock their potential.
In particular, organisations should be striving for improvements in the following 5 value drivers:
- Planning Agility – While organisations are hitting the ceiling in terms of improved forecast accuracy, technology advances have enabled a quantum shift in the volume and speed of demand signals flowing through the network. To take advantage and to truly achieve the status of a responsive supply chain, a step change in planning cycle time is required.
- Inventory Performance – Efficient inventory management is achieved when the right inventory rules are applied based on product classification, supported by automated planning against the defined inventory policy. This allows planners to focus on the exceptions and driving improvements in systems planning performance.
- Customer Service – Controlling the flow of demand signals through the supply organisation and identifying when and what to respond to is critical. As is end to end visibility to support prioritisation calls and trade-offs.
- Asset Utilisation – This is more than just the efficient operation of equipment in your factories – it needs to be focused on every asset in your supply chain to realise the true potential. Therefore a methodology and toolset is required which balances product flow across the entire supply network.
- Planner Efficiency – Increased planning efficiency is one of the most common objectives of investment in integrated supply planning systems, but realising this benefit requires more than just software deployment. A change in planning mind set is required where the focus is continuous improvement of system generated plans rather than manual temporary workarounds.
Have you delivered on these drivers? If not – why?
Have you identified the barriers that are stopping you reaching your potential? In our experience the blockers are not always systems related, it is important to understand what is working for you by taking a holistic view across, data, systems, processes, organisation and management information.
To learn more about how our SAP APO Health Check Service you can help you drive supply chain ROI download our eBook: Are you Getting the Most out of your Investment in APO?