Demand forecasting is a key process in managing the supply chain and it drives all the activities related of the planning process. When the demand forecast is not accurate, decisions based on it can lead to operational errors with negative consequences over the whole production process as surplus of capacity and inventory or stock-outs, production downtimes, etc.; causing a negative impact on customer service and costs. On the contrary, when the forecast is reliable, it allows the company to be prepared for changes in the market and to improve their competitiveness and the logistic capabilities may become an important competitive advantage.
A Spanish IT company offers a new cutting edge optimization tool for sales forecasting, production planning and procurement.
The tool is integrated with the client’s management system in order to calculate a tight demand forecast based on the sale record and qualitative information of the market. Without statistical knowledge, the user can obtain the outcome of powerful statistical analysis in real time and in a simple and visual way.
Based on expected demand and information from the supply chain, such as the list of products, the bill of materials, inventory, active purchase and production orders, the system calculates the optimized procurement and production plan taking into account production, purchase and storage costs.
It is an optimal solution for answering to the following questions: Which products should I produce or buy? Which quantity? When should I produce or buy them?
This optimized production planning tool generates a sales forecast report by means of an exhaustive statistical analysis that, automatically and without user intervention, determines the best forecasting method for each item by detecting patterns of behavior, seasonality, cycles or trends. Based on the demand forecast, the system is able to generate an optimized production and procurement plan through the application of mathematical models that take into account factors such as lead times, stock availability, purchase and production orders and production in progress, the minimum lot size, deals, costs associated with purchasing, production and storage, etc. As a result, the user receives a detailed report with the products to buy and produce, when and in what quantity, in order to meet the expected demand and maintain high levels of reliability.
To sum up, its main features are:
- Make sale predictions / forecasts by means of powerful statistical calculations
- Management of new products
- Management of business information (trade actions, competition, etc…
- Allows parameterization by product
- Analyzes and automatically categorizes the portfolio of products
- Dynamic calculation of safety stock based on historic data record and forecast
- Optimized production and procurement planning
- Evaluation of batches according to procurement, production and stocking costs
- Performs calculations for thousands of items in minutes
- Integrates and complements the functionality of your ERP
- Users can have profiles with different views and rights
The optimization system can be used in any manufacturing industry or sector (food, plastic, automotive…).
The company is mainly looking for partners with sales forecasting and production planning needs. Different types of co-operation are possible: license agreement or commercial agreement with technical assistance. The company will offer his knowledge and technical advice during the deployment of the product in final client. Moreover, the company will assist and collaborate in the implementation of the product according to client’s needs.