Available to Promise The question often posed in different ways by individuals and commercial customers about their upcoming order is “how much and when can I get it”? The responsibility for answering the ‘when’ question lies with Customer Service, from calculations by Operations Planning, working with Procurement and Logistics – the Supply Chains group. An accurate delivery promise is dependent … Read More
Planning in Supply Chains is due for an expanded role
Planning is not well understood Because Planning considers the future, the answers generated will not be ‘correct’ to three decimal places, but that does not make planning less important. It is the process of planning that has the greatest value. It involves collaboration by the affected parties, using agreed definitions and the same data to achieve agreed outcomes concerning the … Read More
How many Supply Chains to satisfy customers’ needs?
Operate with One Plan You cannot ‘do’ supply chains – it is a planning concept. Developed in the early 1980s, the term reflects an effective plan that goes across operational disciplines for moving and storing items to meet end user needs. The ‘doing’ is performed by disciplines that are brought together as the Supply Chains group. At the minimum, the … Read More
Supply Chains terms and understanding by senior managers
The challenge of words At a recent aerospace conference, the CEO of a major company stated that he expected the sector to be affected by supply chain issues until the end of 2024. Of greater concern for supply chain professionals, he stated that “we have to resolve the supply chain issues and the surprises associated with them; and we have … Read More
Planning Operational Capacity in your Supply Chains
Capacity challenge Flows of materials and items through an organisation’s supply chains are governed by inventory, lead times and capacity – the triangle of operational resources that provide Availability of products for customers. Of the three, operational capacity within a business is the resource least influenced by external events and decisions and therefore more able to be planned. Operational capacity … Read More