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

Description

Demand planning in Corporate Performance Management (CPM) software involves the use of pre-built solutions tailored to accurately forecast the supply needs over time in process manufacturing industries. This functionality allows organizations to effectively plan their manufacturing processes, mitigating stockouts and excess inventory while ensuring optimal usage of resources.

Example Use Case

Scenario: A regional contract bakery produces breads and desserts for various brands around the country. They experience significant seasonality with some products, while others are steady throughout the year. They use various commodities in different types of measurements in their products, and struggle to plan when accommodating different spoilage dates, spikes and demand, and so on.

Solution: With the introduction of a pre-built process manufacturing demand planning solution in their CPM software, the company can plan for materials based on needs from their contracts, minimizing spoilage by receiving supplies only when needed. The system also predicts seasonal demand for their pumpkin pies, ensuring that they are not sitting on spoiled vats of pie mix come December.

Considerations

Process manufacturing can be challenging, as it integrates different measurement types, spoilage, loss, and so on add much more complexity to the process than basic component builds. With the inclusion of packaging, the manufacturing also has a more discrete manufacturing component as well. Both must be considered when looking at a solution.

Keep in mind that most CPM tools on the market do not have good process manufacturing planning capabilities. This is usually a dedicated product.

Questions to Ask a Vendor

• Process Manufacturing Capabilities: Is this demand planning solution specific to process manufacturing, or is it more of an all-in-one tool?
• Overall Demand Planning: We package our goods as well. Can the system helps us forecast packaging needs?
• Labor Forecasting: Can we integrate the manufacturing demands it a labor model, helping us plan the financial impact of our demand more holistically?