1. Supply Chain Optimisation (SCO) and SCM - Pg 1
2. Supply Chain Optimisation (SCO), Agile Supply Chain - Pg 2
3. Supply Chain Optimisation (SCO), Lean, Agile and Leagile - Pg 3
4. Supply Chain Optimisation (SCO), SCM and Cost Reduction - Pg 4
5. Supply Chain Optimisation (SCO), Agile Supply Chains and ERP - Pg 5
6. Sales & Operations Planning (S&OP) - Pg 6
7. Supply Chain Optimisation Software (SCO) - Zemeter ® - Pg 7

An Example of a Supply Chain Optimisation Software Solution (SCO Software) - Zemeter

We have established that SCO is a complex process and requires software assistance if benefits are to be maximised.  The more complex the business the greater the need for SCO software and this leads to the fact that the more agile the business is the greater the need for SCO software.  The number of SCO software packages have proliferated in recent times and there are a range of prices that can be paid to purchase these systems.

Typically SCO software supports the S&OP processes by providing a suite of functionality including:

• Demand planning
• Collaborative forecasting techniques
• Supply planning
• Finite scheduling
• Analysis & reporting capabilities

One instance of a SCO software product is Zemeter®.  Below is a screenshot of the Demand Planner module of Zemeter showing the generation of the initial forecast.  This module of the SCO software system corresponds to the Promotions Update and Forecast Creation processes shown on the S&OP Process Map.

The software also uses a Collaborative forecasting techniques (‘Sales Collaborator’) module of the Zemeter SCO software product allowing sales staff, distributors and customers to edit “their” part of the demand forecast. The edits are reviewed by the Demand Planner who is responsible for final Forecast Adjustment and Forecast Consolidation processes shown on the S&OP Process Map.

The Consolidated Forecast is passed to the Supply Planner who generates the Constraint-based Supply Plan to meet the demand reflected in the Consolidated Forecast. The Supply Plan is passed to the resource scheduler who might well use Finite Scheduling techniques. Below is a screenshot of the Scheduling module in Zemeter.  This module of the SCO software system corresponds to the Plant Scheduling process shown on the S&OP Process Map.

Tracking plan performance is essential for an affective S&OP process. Below is a screenshot of the Early Warning module in Zemeter which corresponds to the Performance Review process on the S&OP Process Map.

Summary for Example of a Supply Chain Optimisation Software Solution:

• Software is available that offers an integrated SCO process
• SCO software is reporting-rich offering data visualisation and strong analysis capabilities
• Modern approaches to SCO benefit from utilising common data across the whole business as well as containing long term and short term planning within the one data set
• To be effective SCO requires collaboration between sales, marketing and supply and the systems support this
• The monitoring of the plan can be automated with relevant people being alerted by email if pre-defined conditions / warning levels are exceeded – this early flagging of potential problems enables a proactive approach to management of the supply chain
• SCO software systems support simulation capabilities along the lines of a ‘what-if?’ analysis enabling the impact of different scenarios to be assessed.

Overall Conclusions:

• Agility requires effective supply chain optimisation processes and software applications
• SCO is the key technological agility enabler
• Sales and Operations Planning (S&OP) is core to supply chain performance
• Collaborative S&OP is the way forward and the technologies are in place to make it a reality
• Analysis & understanding of customers, suppliers and inventories are essential to develop a meaningful and workable Sales & Operations Plan
• Software is available that offers an integrated SCO process
• SCO software is reporting-rich offering data visualisation and strong analysis capabilities
• Modern approaches to SCO benefit from utilising common data across the whole business as well as containing long term and short term planning within the one data set
• SCO software systems support simulation capabilities along the lines of a ‘what-if?’ analysis enabling the impact of different scenarios to be assessed
• The monitoring of the plan can automated with relevant people be alerted by email if pre-defined conditions / warning levels are exceeded – this early flagging of potential problems enables a proactive approach to management of the supply chain