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Requirements Planning

Requirements Planning: Address Your Inventory Challenges with a Flexible Solution

The more inventory you have to carry to support your customers and sales, the greater your overhead costs. Good inventory planning can help you minimize your inventory investment in ways that reduce costs, protect your competitive advantage, and increase your ROI. But that's not easy to do when sales are no longer keeping pace with historical trends and demand planning is more challenging than ever.

Gain supply and demand visibility and cost savings with Demand Solutions Requirements Planning. Whether you implement this solution separately or integrated with Demand Solutions Forecast Management, it can help you better plan and manage your inventory positions by using sophisticated, industry-standard forecasting and requirements planning algorithms.

Demand Solutions Requirements Planning makes it easy to optimize your inventory and increase your customer service levels at the same time. When you use Requirements Planning in conjunction with effective demand planning techniques, you can fulfill more replenishment strategies and quickly optimize your inventory to help meet the needs of even your most demanding customers. Built-in social collaboration capabilities allow all your stakeholders to share requirements planning information in real time — without needing to schedule additional meetings.

Our predictive lead time module and business intelligence functionality give you even greater decision support as you enhance the overall health of your business. And because the Demand Solutions platform is now available as a cloud-based solution, you can get powerful inventory planning functionality without making an up-front investment in software licenses and implementation.

Prevent Stock Outages

Murky supply chain visibility, poor forecast management techniques, and reliance on inflexible systems all contribute to frequent stock outages, increased inventory costs, and poor customer satisfaction. With Demand Solutions Requirements Planning, you can increase visibility of your material requirements to enable better allocation of resources as well as more efficient inventory planning and safety stock.

With Requirements Planning, you can:

  • Link demand for finished goods to the required raw materials or component parts to allow for changes in mixtures or yields and to support the phasing in of new components
  • Establish order parameters, such as minimum order quantity or lead time, for each product in each location Set alerts for replenishment actions — in the form of planned orders — to meet your inventory objectives
  • Temporarily reduce or build inventory and vary customer service levels throughout the year with time-phased safety stock and safety time
  • Manage by exception with action messages; you can determine which items require immediate attention
  • Apply different inventory strategies to individual distribution centers or customer locations
  • Mitigate forecast management risks that accompany long lead times; if a product oversells its forecast this week, Requirements Planning will automatically increase the next period's planned orders

Optimize Your Inventory Planning Strategies

Some items are more profitable than others. Some customers' needs may be more critical than others'. Demand Solutions enables you to automatically assign ABC codes that objectively quantify the relative importance of each item and each customer as you optimize your inventory levels. With ABC codes, you can continue to manage and tweak your inventory planning strategies.

Overcome Constraints for Better Supply Chain Management

Most inventory planning systems are rigid and inflexible, failing to reflect the reality of supply chain management. Demand Solutions Requirements Planning takes constraints such as production and shipping capacities, seasonality, material shortages and allocations, labor and warehouse space into consideration in its planning calculations.

Find the Best Course of Action with What-If Analysis

Demand Solutions provides a panoramic view of even the most complex supply chains. As your inventory planning data and strategies change, you can quickly evaluate and execute new plans of action.

You can use Demand Solutions Requirements Planning as a multi-purpose tool, applying its planning logic to your finished goods and raw materials planning as well as to your distribution plans. You can also use built-in what-if analysis to explore different planning scenarios and see the effects on your bottom line.

For example:

  • What if we reduce the safety stock targets on our A & B items?
  • What if we increase minimum order quantities on all items shipped to the West Coast?
  • What if we consolidate three distribution centers into two?
  • What if we accept that 37% forecast increase next month?

Requirements Planning lets you make informed responses to your dynamic challenges by enabling you to simulate a variety of different planning scenarios before you commit to a plan. You can simulate the impact of multiple demand and supply strategies in just a matter of minutes.

See how Demand Solutions Requirements Planning has enabled supply chain planning success and business growth for thousands of companies.

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