Why New Horizon for Supply Planning (called Buyer’s Workbench)?

  • Reduce transportation and ordering cost by optimizing full truck load or container load
  • Maximize investment buy ROI by balancing against inventory carrying cost
  • Increase warehouse operation efficiency by leveling its capacity needs using ordering or receiving calendar
  • Improve work efficiency by recommending optimized planned orders so planner can just review and approve
  • Classify inventories into different categories including cycle stock, safety stock, investment buy, and directed buy

Forecasting and Supply Planning: Challenges and Opportunities

Fierce competition because of the Internet has put some serious strain on the wholesale/distribution and retail industries. Customer demands coupled with the speed of innovation add up to added pressure on supply chain practitioners.

Wholesale distributors and retailers typically experience the following supply chain related issues:

  • Too much inventory: This takes away a lot of capital and causes high warehouse maintenance and product obsolescence
  • Out of stock: This affects customer satisfaction, as a product is not available when they want it.
  • Loss of sales: Products are becoming more and more commoditized. Without a properly stocked inventory, the customer will find the products somewhere else.
  • Reduced margin: Vendors sometimes provide volume discounts or incentives to move their products. Many wholesale distributors and retailers are either not taking advantage of that, or are suboptimal in this money-saving practice
  • Internal transfer: Many companies tend to buy products from vendors, but there is no need to do this. They can actually transfer from other warehouses to reduce costs and inventory.

Solution

New Horizon Buyer’s Workbench is a cloud solution which generates optimized supply plan.

The solution not only produces traditional Just In Time (JIT) supply plan, but also optimizes the supply plan which meets vendor requirements, maximizes margin, reduces overall inventory yet still achieving high customer service level. Most notably, The tool optimizes full truck or full container load based on the truck/container size (weight, cube, pallet, case, etc.). Investment buy based on vendor temporary price reduction or volume discount is also part of the functionalities.

Finally, the tool produces inventory rebalancing recommendation between DCs before making any purchasing proposals.

Results

  • Improved business bottom line by reducing purchasing cost through investment buy
  • Reduced inventory on hand while still meeting customer service level
  • Enhanced user productivity by automatically building full truck or container load