Advanced Planning Systems (APS) are no longer optional – they are becoming critical to smarter, faster and more profitable supply chain decisions. In this Supply Chain Byte, Lisa Anderson explains why manufacturers should be looking closely at APS. Recent client situations highlighted three key needs: scenario planning, constraint-based planning and end-to-end visibility & predictive insights.
Every company especially those prone to volatile and changing conditions must focus attention on creating supply chain simulations so that they are prepared for changing conditions such as the closure of a key supply chain chokepoint, delays from critical suppliers, etc. Incorporating simulations into master production schedules and distribution and logistics plans dynamically is of paramount importance. In addition, clients have been focused on the value of constraint-based revenue forecasting. It doesn’t matter if Sales can sell $10 million in the month if the production facilities and distribution and supplier networks can only fill $8 million. Incorporating capacity plans and constraint-based planning with APS is increasing in importance. Lastly, the need for end-to-end visibility of incoming products and materials with real-time estimated times of arrival (ETAs) which can be incorporated into ATP (available to promise) decisions is a “must”.
APS gives leaders the ability to evaluate options quickly, understand constraints and make better decisions that support customer service, profitability and growth. To learn more about APS capabilities, refer to our article related to advanced planning strategies for manufacturing success.
If you are interested in reading more on this topic:
Supply Chain Visibility Fueling Faster, Smarter & Proactive Decision Making