Yield Optimizer
How can your organization fulfill demand, synchronize your entire supply chain and minimize costs?
Globalization, specialization and outsourcing are largely the result of recent developments throughout the world. These developments consist of factors such as easy access to information, new emerging markets, new low cost manufacturing technologies, and fast, relatively cheap, flexible and reliable modes of transportation.
Consequently, many companies' supply chains are global and often complex. Organizations need flexibility to identify and choose the best way to fulfill demand over different time periods and to synchronize their entire supply chain, minimize costs and avoid missing sales opportunities.
Where does the supply chain start and end? Traditionally, each supply chain node has created its own costly inventory buffer to take into account seasonal trends and fluctuations in demand upstream. Enterprises with complex supply chains have tended to make-to-stock to keep lead times down, but not always.
Item sourcing rules for each level in the supply chain have been fixed to keep things simple. The outcome of this is far from the optimum business model.
A Supply Chain Perspective
Enterprises must look outside their own organizations and consider the delivery capabilities and capacities of their suppliers and customers to streamline the supply chain and determine whether it can deliver the goods, at what cost and according to which time scale.
Optimization to Balance Supply
How do you meet demand at minimum cost? Enterprises need simulation and optimization tools that enable them to optimize sourcing across their entire supply chain network taking into account delivery capability, cost, production and transport options.
They need to synchronize the material flow through the entire supply chain and to explore the "what if" options for meeting forecast demand. By systematically simulating and evaluating different possibilities, enterprises can optimize their business rules as time and demand changes to increase sales, avoid stockouts, reduce operational costs, cut inventory levels and improve resource utilization.
|