Includes a pre-built demand planning solution that I can use to predict discrete manufacturing component needs over time

Description

The software should include a dedicated module that facilitates a comprehensive understanding of future demand patterns, helping organizations optimize manufacturing processes, manage inventory effectively, and enhance operational efficiency. This includes the finished good level down to individual components, which feeds to and from a supply chain management tool like an ERP.

Example Use Case

Scenario: An automobile parts manufacturer uses CPM software to streamline manufacturing process. As customer demands fluctuate, it becomes increasingly challenging to plan and fulfill component requirements in a timely manner.

Solution: With the pre-built demand planning solution incorporated in the CPM software, the manufacturer can predict component needs accurately. The software analyzes previous sales trends, external factors such as market demand, industry trends, etc., to provide accurate demand forecasts. With units forecasted at the finished good level, the system can automatically predict the component needs for those goods.

Considerations

Components for different manufacturing processes can have different meanings. For example, some manufacturers receive units partially built, or receive a kit that must be assembled. Make sure the solution accommodates the unique requirements of your manufacturing process should you need to plan at a component level.

Most demand planning tools on the market only plan, at least by default, and the finished good level. Make sure the system has the ability to scale into components, as that requires the system to scale exponentially with the amount of components required in a finished good.

Questions to Ask a Vendor

• Demand Planning Granularity: Is the system capable of planning for the amount of components, subcomponents, kits, and so on that we need? How deep into the manufacturing process can this system go?
• Integration Capabilities: How well does the demand planning solution integrate with other existing systems in an organization? Is it able to push the forecast at the needed granularity back into the ERP, as well as take in actuals from the prior period, with ease?
• Prediction Capabilities: What kind of predictive capabilities exist in the software, and at what level?