Demand-Driven Manufacturing Requires Improved Supply Chain Management

To remain competitive, many manufacturers are revamping their supply chain to become more demand-driven. At the heart of this effort, they are searching for ways to reduce costs, increase visibility and improve responsiveness.

Being demand-driven requires manufacturers to link their production and procurement activities more tightly with actual demand. To accomplish this, they need new supply chain management solutions that allow them to account and plan for enterprise-wide demand.

At Glovia, we have been following these trends closely and have developed new modules that specifically address these new challenges: glovia.com Order Management and glovia.com Supply Chain Planning.

Advanced Order Management
Responding to customer demand is challenging for companies, especially if they lack visibility into their operations. To manage orders effectively, companies must have visibility into their enterprise-wide demand and be able to link those demands to available supply.

This is essential because orders drive the rest of your operations – orders affect materials planning which affects production planning and procurement. With inaccurate order information, companies generate product plans and supply orders that are out of sync with demand, which results in excess inventory and inefficient capacity utilization.

glovia.com Order Management enables you to commit to customer orders with confidence while keeping your production utilization steady and inventories lean. Order Management helps you automatically create stable, achievable plans that meet customer demands and provides complete visibility into all Sales Orders and Sales Quotes, whether configured or not, as well as the supply and production orders required to complete the delivery.

With Order Management, you can automatically provide accurate Capable-to-Promise delivery dates for new, changed, and configured orders. The module provides you with complete visibility into your operations, which helps you make the right supply and production decisions while reducing inventories and improving customer service. Order Management also helps you reduce transportation costs by ensuring deliveries are picked, packed and shipped together and helps you be more responsive by automatically suggesting split shipments.

Enterprise-wide Planning
To enable you to become more responsive, Glovia developed a new enterprise-wide planning solution, glovia.com Supply Chain Planning, which shifts production planning closer to actual demand. Instead of aggregating demand and optimizing that plan, glovia.com now supports a process where you optimize the execution of a plan and test your supply chain performance in real-time, as the demand is created.

Supply Chain Planning enables you to synchronize enterprise-wide production and supply with enterprise-wide demand. The module allows you to aggregate total demand and plan centrally for both the production capacity and the supplies required to satisfy that demand by consolidating sales, production, inventory and purchasing information. The system chooses the best supply solution for every order using a weighted delivery/cost algorithm.

Supply Chain Planning increases your visibility into enterprise-wide demand by aggregating forecasts and sales orders into a comprehensive demand stream and makes this information available through a single, easy-to-use screen.

This ability to plan production and procurement activities centrally against aggregated demand is essential for companies who want to realize strategic business objectives such as cost reduction or improved responsiveness. The enterprise planning capabilities of glovia.com enables manufacturers to allocate demand intelligently to the most appropriate production facility based on lowest manufacturing cost or available resources including capacities and inventories, transport costs, and lead times from facility to customer.

Supply Chain Planning also provides full support for Global PSI (Production, Sales, Inventory) planning commonly used by leading electronics and high-volume manufacturers.

For more information about Glovia's Supply Chain Planning solutions, please see:

glovia.com Supply Chain
glovia.com Factory Planning
glovia.com Order Management

or call us at 800.223.3799.