Balancing Supply & Demand
Deploy Your Resources Optimally and Maximize Revenue
Walking the tightrope of balancing supply and demand represents a challenge as old as manufacturing itself. The dilemma is relatively simple to illustrate: Too much supply and not enough demand leaves working capital tied up in inventory; too much demand and not enough supply results in lost sales. So if it’s so simple to explain, why is it so difficult to resolve supply/demand mismatches?
Steelwedge S&OP Operations helps you improve global demand forecasts and optimize site-level supply and production plans for upstream functions including operations, logistics and third-party suppliers.
The sales and operations planning (S&OP) process powered by Steelwedge enables you to compare unconstrained netted supply plans to rough-cut capacity limits and identify your capacity imbalances. Through the S&OP process, the organization sets a projected business level that balances expected sales and production capabilities with financial and inventory implications. The constrained demand plan reflects a demand plan aligned with the supply plan.
Review aggregate load on critical resources in units and hours. Perhaps most important in today’s volatile business environment: look at the financial impact of “what-if” scenario planning to evaluate how alternative scenarios such as demand shifting, capacity adjustments and inventory re-build can resolve imbalances and influence working capital, asset utilization and inventory targets.
Steelwedge supports supply/demand balance by enabling users to:
- Integrate the consensus demand plan with inventory and supply planning
- Drive cycle and safety stock targets by demand and supply segmentation policies
- Project inventory levels in units, cost and by inventory investment
- Support outsourced manufacturing
- Analyze inventory and supply performance
- Compare network and plant resources for load and capacity in unit and hours
- Create, evaluate and retain alternate scenarios for resolving imbalances (including demand shifting, capacity adjustments, inventory pre-build, etc.)