The Best Way to Develop Realistic Supply Chain Plans
Imagine that an opportunity to gain more market share opens up. This opportunity would almost double your output but would solidify your staying power in this particular market, and your long-term business goals. Can your supply chain network handle it? Do you need to invest in additional shop floor resources? Would you be able to deliver on-time consistently?
The only way to know is to develop a holistic supply chain plan—with robust sales and operational planning and realistic capacity planning—which is exactly what ASK Power did in a similar situation.
A Realistic View
ASK Power manufactures and supplies electrical power connectors for the transportation, military, telecommunications, and OEM markets. When company management went after more business in a key market, they realized that manual forecasting on spreadsheets did not provide an accurate view of how the company was delivering on demand.
With detailed shop floor control and visual capacity planning tools, ASK Power is able to forecast 45 or 60 days ahead of production—and regenerate plans based on machine layout as needed. What this does is more accurately reflect capacity and work center reality both for infinite and finite capacity planning.
A Tight Control on Inventory
Another challenge ASK Power faced is delivering on this increased demand without building up stock. Reconciling inventory levels on spreadsheets at the end of the month proved to be unsustainable.
Robust sales and operations planning (S&OP) software has enabled the company to develop more accurate forecasts. After reviewing capacity, inventory, and scheduling, management can set inventory targets and plan supply that has increased inventory turns—from three to as much as six.
A More Efficient Production Line
Taking advantage of a market opportunity not only has grown business but presented new challenges for ASK Power. But with DemandCaster Capacity Planning and S&OP the company has not only gained market share but also shorter lead times, sales growth, and lean inventory.
See for yourself. Register for a DemandCaster webinar now.