Supply planning will never be the same
The recent volatility has exposed traditional planning approaches like MRP – highlighting their lack of agility. As supply chains remain in flux, companies urgently need planning solutions capable of keeping up.
What if you instantly knew the full business impact of late material? A machine breakdown? Or an added order? And what if, in a split second, your planning system immediately suggested the best way to address the situation?
This is what concurrent supply planning is all about.
Concurrent supply planning fundamentally changes how you manage the supply side of your business
It’s about connectivity and a holistic approach to supply planning where information is instantly available to all parties.
Instead of looking at procurement, production, distribution, and inventory in isolation, concurrent planning optimizes your supply chain as a whole. Speeding up your planning cycle and allowing your business to operate based on the latest information and with minimum disruption. It is the very basis for a resilient supply chain.
Here are my top five reasons you should start your concurrent planning journey as soon as possible.
1. It enables you to synchronize all supply functions and planning horizons
Planning methods like MRP, CRP, and DRP support individual supply chain functions but offer little help synchronizing them.
For example, an MRP-generated production plan may need to go through time-consuming capacity and raw material availability checks before release. By the time your production plan is ready, your procurement and distribution planners have already started their work based on incomplete information. This results in longer lead times and inventory and customer service issues.
Concurrent planning works from a single data set and ensures that all your supply chain functions and planning horizons remain synchronized. When consistency and transparency are guaranteed, communication between business areas is improved, and functional silos and duplicate data sources disappear. Instead, you can focus on what’s best for your company.
2. You get 100% visibility
A concurrent supply planning solution seamlessly integrates all your supply functions and planning horizons. As soon as something changes in one area, the impact is visible to all other areas. When stakeholders can follow a clear “cause and effect” relationship, they start to trust the system.
For example, if there’s a late incoming material, your planners can immediately see how it will impact your inventory, production, and ability to meet demand. Similarly, your weekly production plan links directly to your detailed production schedules. So, when you update on one horizon, it is visible on another.