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Manufacturing – LT Supply Chain Demand Assurance & Cost Optimization

Problem

What is the long term (LT) demand? Are there sufficient resources to produce the demand in the time that it is need and on the product road-map? How are production assurance and product costs balanced to fulfill demand at an optimum cost?

Cost

One plant/supplier always meets demand and with quality thus minimizing downstream warranty or scrap issues but they are the highest cost, lowest volume producer. Another plant/supplier is low cost/high volume but with higher scrap. So, disburse manufacturing/supply wrong and have high quality but insufficient product or sufficient product but with warranty and scrap costs.

Our Solutions

Start with a LT statistical demand forecast with a probable range of outcomes then match with volume/discount and quality commitments to iteratively distribute manufacturing among plants/suppliers that optimizes the conflicting interests between revenue maximization, cost minimization and customer satisfaction assurance.

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