Managing the supply chain is more than placing orders and hoping things arrive on time. Supplier collaboration, system transparency, accurate sales forecasting, real-time inventory information and order tracking, automatic order creation, and managed logistics are core elements of a harmonized, fully integrated supply chain.
Challenge: Suppliers are operating with little or no demand forecast information. As a result:
Supplier production is reactive and often requires longer lead-times before delivery. Sometimes they must wait for raw materials to arrive before producing. Delivery dates may be indeterminable, thus risking an out-of-stock situation.
Without a demand forecast, the supplier may be sitting on excess inventory. For them, it may be time to raise the delivery cost to cover unexpected inventory and storage costs.
Solution: With Merge IT’s Cloud-Based Business Solutions and a collaborative relationship with each vendor, the enterprise can avoid late deliveries and high excess inventories. The process begins by linking each element of the supply chain with a dynamic shared forecasting module. With accurate demand data and real-time customer inventory levels, suppliers can anticipate product volumes to:
Improve production scheduling
Fine-tune Purchasing by buying the right quantities without “emergency” shipments
Reduce raw and finished inventory
Established fixed lead-times and timely deliveries
Never allow the enterprise to run out of stock
The benefits to the business are:
Greater focus on marketing and selling and less on trying to keep the “shelves stocked”
Reduced safety stock because of fixed lead-times
Eliminate out-of-stock and the resulting loss of sales
Increased margins, lower product costs and operating expenses, and improved sales
Transparency and shared information through the cloud-based platform are the critical components for each link of the chain to be able to anticipate and perform.
To learn more about Supply Chain Management software from our trusted brands, contact us here or call today to speak with one of our consultants.
