What demand management solution is good for China?
Filed in archive Point of view on October 28, 2007
Considering the the low transparency of operations in China, one question that comes to the mind is that: "What demand planning tools are better for companies which have China operations?"
Well, the answer depends on whether the product demand is fast-changing or not. If not, it doesn´t really matter but for the other scenario, the solutions with great collaborating features seem like a good option.
Based on this notion, what solutions do you recommend? Any thoughts?
Tags: demand management in china supply chain scm logistics collaboration 2007 supply+chain
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Response from:
Dhananjaya Krishna
(10/29/07 1:52pm)
Response from:
Dhananjaya Krishna
(10/29/07 1:57pm)
It would also be based on four categories of items and their expectations to the market.
Engineered-to-order
Class C (maybe B) items that can be stocked would be an option.
Assemble-to-order
Sub Assemblies that can be stocked
make-to-order
Based on demand pattern and speed-to-market, the BOM level will need to be determined to stock appropriately
make-to-stock
Based on demand pattern and speed-to-market, the end item can be stocked
Engineered-to-order
Class C (maybe B) items that can be stocked would be an option.
Assemble-to-order
Sub Assemblies that can be stocked
make-to-order
Based on demand pattern and speed-to-market, the BOM level will need to be determined to stock appropriately
make-to-stock
Based on demand pattern and speed-to-market, the end item can be stocked
Response from:
ehsan
(10/29/07 2:05pm)
Thanks Dhananjaya,
Can you explain a little bit more?
Can you explain a little bit more?
Response from:
Dhananjaya Krishna
(04/07/08 6:20pm)
Hello Ehsan
Demand planning for remote locations mandate a lot more analysis and frequent reviews. Based on the type of products the analysis and review will change. In all cases non-perishable items are less intensive than perishable ones. Also in all cases S&OP (sales and operations planning) will help and will require top management commitment.
Make to stock: the products can be stocked and sold at finished goods level.
these parts will have to analysized & planned at finished goods level. Use sales order history for review (pattern)
assemble to Order: the products can be stocked at sub-assembly level and sold at finished goods level (exception after-market).
these parts will have to analysized & planned at sub-assembly level. Use work order history for review (pattern) and/or 2-level MRP planning
Make to Order: the products can be stocked at raw materials level and sold at finished goods level (exception after-market).
these parts will have to analysized & planned at raw materials level. Use Purchase order history for review (pattern) and/or 2-level MRP planning
Engineered to Order: the products cannot be stocked except for a few class C items like nuts, bolts and others (exception after-market).
these parts will have to analysized & planned for effective supplier management and their reliability. Use supplier KPI's to improve performance and concurrent engineering tools
Hello Ehsan
Demand planning for remote locations mandate a lot more analysis and frequent reviews. Based on the type of products the analysis and review will change. In all cases non-perishable items are less intensive than perishable ones. Also in all cases S&OP (sales and operations planning) will help and will require top management commitment.
Make to stock: the products can be stocked and sold at finished goods level.
these parts will have to analysized & planned at finished goods level. Use sales order history for review (pattern)
assemble to Order: the products can be stocked at sub-assembly level and sold at finished goods level (exception after-market).
these parts will have to analysized & planned at sub-assembly level. Use work order history for review (pattern) and/or 2-level MRP planning
Make to Order: the products can be stocked at raw materials level and sold at finished goods level (exception after-market).
these parts will have to analysized & planned at raw materials level. Use Purchase order history for review (pattern) and/or 2-level MRP planning
Engineered to Order: the products cannot be stocked except for a few class C items like nuts, bolts and others (exception after-market).
these parts will have to analysized & planned for effective supplier management and their reliability. Use supplier KPI's to improve performance and concurrent engineering tools
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Engineered-to-order
Class C (maybe B) items that can be stocked would be an option.
Assemble-to-order
Sub Assemblies that can be stocked
make-to-order
Based on demand pattern and speed-to-market, the BOM level will need to be determined to stock appropriately
make-to-stock
Based on demand pattern and speed-to-market, the end item can be stocked