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 Home » Services » Supply Chain Strategy » Strategic Master Planning
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Strategic
Master Planning
Strategic master planning reviews a client's production, storage, and shipment capacity, accounting for seasonality in demand, supply, and costs. This analysis creates a policy for build-ahead inventories and identifies the necessity of additional capital or labor investment to meet peak demand. Clients typically use this service to answer the following questions:
- How much should I produce, store, and ship each month given expected seasonality in demand, supply, or costs, so that I minimize total cost but still meet my service levels?
- How does seasonality affect my build-ahead inventory policy?
- Is it a good idea to invest in that extra set of tooling now, or should we continue to use overtime?
- How much discretionary demand should be served for a given demand region in a given month to maximize overall profitability?
Quantifiable benefits of optimizing your supply chain strategy include:
- Increased customer service fill rates and lead times by 1 to 5%.
- Maximized service of the most profitable customers
- Reduced operating costs by 5 to 15%, including freight, handling, manufacturing, and procurement.
- Reduced facility and in-transit inventory by 20 to 30%.
- Reduced fixed assets by 2 to 5% by consolidating warehouses, plants, and production lines.
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