icon_broadcast MULTI-TIER FORECASTING & PLANNING

Solution Overview

In contrast to traditional linear demand planning processes that depend on network stakeholders-participants to “cascade” requirements through a series of serial demand calculations and communications tier-by-tier;  OEMs that model their Supply Network (‘Extended Bill of Resource’)  can eliminate the guesswork and latency of communication that currently exists resulting in supply chains that are more responsive while requiring less working capital.

SDX™ 8.0 provides a single ‘system of truth’ for the Supply Network. Analysis of aggregate demand by commodity category, grade, specification, form and/or dimension provides the decision support tools for planning, forecasting, evaluating sourcing policies decisions and implementing alternative sourcing models and centralized buying programs to reduce cost, supply risk, and improve overall supply chain efficiency.

Highlights & Capabilities

Multi-Tier Demand Planning

OEMs (Network Sponsors) using finished part schedules as inputs, and, using the ‘Extended Bill of Resource’, can calculate requirements for individual parts, materials, and processes that are captured in the ‘Extended Bill of Resource’.  These plans are automatically adjusted based upon actual lead time triggers and calculated by intelligent algorithms.  Plans are then parsed and communicated throughout the supply chain as a means of “broadcasting” requirements.

Additionally, these requirements can be checked against known capacity requirements, with constraints identified as applicable.

Raw Material Forecasting

OEMs (Network Sponsors) have the capability to calculate raw material requirements across their Supply Network based upon finished goods schedules.  Companies can report their requirements at the alloy/composite or even down to the elemental/primary material input level. (see Figure 1:  Example of SDX™ 8.0 Raw Material Forecast).

SDX™ 8.0′s powerful parametric search predefined and ad-hoc reporting empowers the user to create unique analysis of any relevant set of attributes, and share it with selected trading partners and supply network stakeholders: by Commodity Category; Grade; Specification; Form and/or Dimension; Elemental input; Material Source; Geography: Manufacturing / Part Transformation Process; Economic Value/Spend, or other attributes that are captured.

Business Value & Benefits

  • Improved planning performance for the Entire Supply Network.
  • Reduced inventories, requiring less working capital.
  • Support for proactively managing raw material price exposure through the development of long-term commercial agreements, the use of futures markets/hedging contracts, or other financial vehicles to cover short positions.
  • Ensures supply across multiple tiers, enabling a demand-driven Supply Network.
  • Supports adjacent SDX™ 8.0 Solution Value & Benefits

Figure 1: Example of SDX™ 8.0 Raw Material Forecast