Demand Planning Optimization
Evaluation of current demand plan accuracy and creation of solutions to reduce gaps and improve accuracy based on market and marketing information.
- The accuracy of demand planning is the foundation of supply-chain optimisation.
- In essence, the more accurately you can estimate demand and the further ahead you can estimate, the more efficiency you could achieve which means you can lower costs and take advantage of other revenue generating opportunities.
- Often demand planning is based on an increment of historical sales, without consideration of market factors that impact demand such as seasonality, competition, the economy, substitute products, marketing and promotions.
- We utilise all these factors in our planning model to get to as accurate an estimate of sales demand as possible.
Procurement Optimization
Mapping of procurement processes across suppliers and creation of alignment with demand and operational planning to ensure most cost effective solution is applied alongside SLA’s and risk considerations.
- Procurement is the link in the supply-chain between demand planning, supplier SLAs and business resource planning.
- Thus, it is a critical component to the optimisation of the supply-chain function, yet is often overlooked from a strategy perspective.
- Some of the key contributions of the procurement function is to gain bulk discounts, reduce order costs and delivery periods, minimize supplier and customer SLA risks and ensure supplier quality standards.
- Within these sit the consideration sets for supplier, product and customer agreements, expected demand and business resourcing.
- At Blacksheep Consulting we account for all these considerations to develop models and processes that facilitate an optimized procurement function.
Supply Optimization
Align demand planning, procurement and supply chain resourcing (e.g. warehousing and distribution resources) to create an optimised delivery solution that best suits the business and customers in both the current and future states.
- The final component of the supply-chain function is business resourcing through warehousing and distribution.
- After ensuring accurate demand planning and integrating the planning with the procurement function, we are now in the position to efficiently allocate the required resources.
- Essentially, we need to ensure we are resourced well enough to meet demand expectations within our customer SLAs at the lowest possible cost.
- Alongside this, we are able to identify excess resourcing that could be considered for alternative revenue opportunities.
