Supply chain transparency is an essential prerequisite for successful risk management in the entire PTC (process-to-customer) process. To improve this, many companies rely on a consistent planning hierarchy, with which the planning and scheduling conditions in a supply network can be closely defined and adjusted if necessary. A continuous planning sequence allows you to react quickly when changes in demand and new situations arise on the procurement side.
Many years of experience show that planning and disposition strategies should be as concrete and centralised as possible. This results in the possibility of central control of planning and disposition parameters, and thus a dynamic and statistical determination of safety stocks.
Safety stocks are additional stock that must be maintained to balance out uncertainties in supply and demand. Therefore, safety stocks should be dynamically adjusted on a regular basis depending on various influencing factors such as quantity changes, replenishment lead time, planning errors and the requested delivery capacity.
Dealing with these influencing variables, defining safety and target stock levels based on detailed product portfolio analyses and subsequent evaluation of the overall situation are among the core tasks of Buchbach Consulting’s current mandate.
This is our contribution to securing daily delivery capacity – even in times of stress such as during the COVID-19 crisis.
Contact us. We would be delighted to support you in the areas of demand and supply management: