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Value Chain Planning

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In today’s globalized economy, businesses increasingly rely on their supply chains. Any disruption to the supply chain can significantly impact a business’s bottom line. By collaborating with their partners in the value chain, companies can reduce their risk and improve their ability to respond to disruptions.

There are many benefits to collaboration in value chain planning, including:

  1. Improved visibility: Businesses can gain better visibility into their supply chains by collaborating. This allows them to make better inventory levels, production schedules, and transportation decisions.
  2. Enhanced customer service: Collaboration can help businesses to improve their customer service. This can be done by reducing lead times, improving order accuracy, and providing better tracking information to customers.
  3. Reduced risk: Collaboration can help businesses to reduce their risk. This can be done by identifying and mitigating potential disruptions to the supply chain.
  4. Increased efficiency: Collaboration can help businesses to identify and eliminate waste throughout their value chains. This can lead to improved efficiency and reduced costs.

Advanced Supply Chain Planning

Advanced supply chain planning (ASCP) is a set of tools and techniques that can help businesses to optimize their supply chains. ASCP includes demand planning, inventory optimization, and transportation planning.

Demand Management and Forecasting Tuning

Demand management and forecasting tuning is the process of ensuring that demand forecasts are accurate and that demand is managed effectively. This is important because precise demand forecasts allow businesses to make better inventory levels, production schedules, and transportation decisions.

Demand management and forecasting tuning can be done through a variety of methods, including:
  • Historical data analysis involves analyzing historical demand data to identify trends and patterns.
  • Market research involves collecting customer and supplier data to understand their needs and expectations.
Strategic Network Optimization

Strategic network optimization is designing and optimizing the physical network a business uses to deliver its products and services to customers. Strategic network optimization can help companies to improve their supply chains in several ways. 

  1. Reduce transportation costs: Businesses can reduce their transportation costs by optimizing the location of warehouses and distribution centers.
  2. Improve customer service: Businesses can improve customer service by locating warehouses and distribution centers closer to customers.
  3. Reduce inventory levels: By optimizing the network, businesses can reduce their inventory levels without sacrificing customer service.
Inventory Optimization

Inventory optimization is the process of determining the optimal levels of inventory to hold. Inventory optimization is vital because inventory levels directly impact costs and customer service. Inventory optimization can help companies to improve their supply chains in several ways. 

  1. Reduce costs: By reducing inventory levels, businesses can reduce their carrying costs.
  2. Improve customer service: Companies can improve customer service by ensuring enough inventory to meet customer demand.

 

Collaboration, advanced supply chain planning, demand management and forecasting tuning, strategic network optimization, and inventory optimization are all important aspects of value chain planning. By implementing these practices, businesses can improve their supply chains and achieve a competitive advantage. 

If you want to learn more about Value Chain Planning and how it can help you, contact us. NexInfo is an experienced Oracle partner that can help you implement Value Chain Planning in your organization.

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NexInfo is a leading consulting company that excels in tailored SaaS solutions across General Accounting, Financial Planning, Supply Chain, Product Lifecycle, People & Talent Management, & Customer Sales & Service processes.

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