Manufacturing Inventory Management
Demand-driven production represents a top goal in manufacturing. This, in turn, requires a highly accurate material requirements planning process that results in minimized inventory levels. This can be achieved through the use of precise forecasts, sophisticated exception management and a high degree of transparency.
Manufacturers strive for high service levels to end-consumers, short delivery times, optimized warehouse management and the efficient use of resources in the production process. However, market demand fluctuations, supplier risks and high production depth can all complicate the realization of these goals and materials management optimization. The belief that high levels of inventory lead to a smooth production process, constant capacity utilization and high service levels is still prevalent. However, with cost pressures continually on the rise, overfilled warehouses are no longer an optimal solution.
Solution ADD*ONE Features
ADD*ONE supports manufacturing companies in the purchase planning of bought-in parts and ensures the optimization of the production planning process. Product features include:
- Self-adapting forecasts
Detailed determination of the future demand situation with no manual maintenance required, including the identification of trends, outliers, seasonality and sporadic demand
- Multi-Level BOM-Explosion
Early procurement of components and purchased parts based on requirements planning
- Cost-optimal orders and batch sizes
Reliable decision proposals for each individual item with the use of intuitive workflows, showing where action must be taken
- Feasability check
Evaluation of the feasibility of planned orders which were calculated by the system on the basis of the planned situation and a detailed summary of the reasons why a plan may not be feasible
- Material Availability check
The user is provided with valid information whether a customer or production order is realizable or not. The availability of bought-in parts or components can be checked ad-hoc, prior to releasing or committing to a given customer order.
- Capacity Visualization
Clear presentation of the degree of utilization of the production equipment across the entire planning horizon - The focus is on the analysis and visualization of potential capacity bottlenecks.
Precise demand forecasting builds a solid foundation for a smooth and effective manufacturing process. ADD*ONE supports companies in their daily operations by providing production planners with future demand figures, a cohesive production program and optimized procurement of raw materials. Further benefits include:
Reduced inventory levels
Precise demand forecasts enable reduced inventory levels
High delivery capability
Effective inventory management results in optimized demand coverage
Reduced cycle times through optimized material availability and capacity utilization
More effective production through optimized batch sizes
Visualization of bottle necks within current planning process
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