Distribution Planning
Your organization needs to optimize product flows and improve logistics decision making to:
- Reduce logistics costs
- Maximize resource utilization
- Improve customer satisfaction
- Reduce obsolescence and waste
Key Challenges
Fluctuating customer demand - Erratic customer behavior and competing customer priorities results in excessive expediting costs to your organization and difficulty in generating an accurate distribution plan
Seasonality and demand spikes - Overlooking seasonal inventory requirements or new trends results in a strain on your distribution and logistics activities
Increasing customer expectations - You rely heavily on effective distribution performance with customers now expecting and even demanding stock availability and on-time deliveries
Capabilities
- Capacity constraints
- Warehouse rebalancing
- Replenishment methodology
- Prescriptive logic
Distribution Planning
Capacity constrained. Distribution Planning optimizations generate the ideal finite capacity plan by considering the costs and capacities of distribution centers and carriers. A range of other factors are simultaneously considered such as lead-times, minimum order size/value, incremental order sizes, and UOM (Unit of Measure).
Warehouse rebalance. The solution includes the ability to evaluate balancing opportunities to suggest inter-warehouse transfer where excess stock positions are able to alleviate shortage positions.
Replenishment methodology. Distribution Planning can utilize several different replenishment models to determine distribution requirements. These include reorder-point quantity, days of supply and forecast driven. The solution provides the ability to apply different replenishment models (dependent on SKU characteristics) within the same overall planning model. Models can be time-phased so highly seasonal products are not subject to a sales forecast during the non-sales period.
Batch size variable UOM. Distribution Planning considers minimum, incremental order sizes that can be applied both at an order and product line level.
Look ahead logic. The Distribution Planning solution ensures maximum utilization of transportation resources by using smart look-ahead logic to partially expedite future requirements into the current requirement to maximize the utilization of a truck, shipping container, etc.
Pegging. Costs and Orders can be pegged at all levels of demand and supply throughout the planning model.
Supersession. Distribution Planning provides comprehensive supersession management. This includes the ability to allocate existing supply of a superseded product to the demand of a new product taking into account potentially different units of measure.
Reverse logistics. Product distribution is not always one way. Many products contain returnable components (printer cartridges) or refillable containers. The perpetual return of such items can be planned alongside the distribution of new products.
Product segmentation. Not all product requirements are equal. Distribution Planning provides specific support for different product segments; these may include consignment stock and vendor managed inventory. In retail and consumer goods supply chains, Distribution Planning segments not-for-sale stock used for samples and product displays.
Shelf life. The Distribution Planning solution respects shelf life constraints on perishable materials reducing waste and providing lower cost plans.
Warehouse kitting. Products are often assembled or repackaged at a warehouse. The Distribution Planning solution supports simultaneous independent and dependent demand streams. Distribution Planning provides warehouse bills of materials to manage kitting and value-add activities in distribution centers.
S&OP support. The Distribution Planning solution automatically makes supply plans and simulated scenarios available to S&OP/IBP processes for tactical planning.
Future Proof Technology
Cloud deployment. Distribution Planning is available in the QAD Cloud and AWS public cloud. Both options provide a secure, reliable and extensive cloud infrastructure.
Mobility. The Distribution Planning user experience supports Web, mobile and touch screen user interfaces.
Analytics. As IoT and machine learning deliver a greater number of data points, supply chain solutions must have a best-in-class capability to translate data into trends and decision grade analytics. Distribution Planning seamlessly embeds capability from Qlik, a leading business analytics provider. This provides an intelligent and intuitive user experience supporting responsive and accurate decision making.
In-Memory. Distribution Planning uses a highly scalable, rapid in-memory data model enabling real time simulation planning and effective decision support.
Integration. QAD DSCP supports integration with QAD, SAP, Sage, JDE, Oracle, Infor, Microsoft and many other ERP and enterprise applications. It uses a data hub approach to exchange supply chain information across the organization and includes tools for building custom integrations.
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Logistics Development Manager – Essilor
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