How to Best Understand Engineered to Order

Executive Summary Engineer to order or engineering to order has a specific definition. Sales orders must be submitted consistent with engineered or configuration order as it relates to replenishment trigger. Video Introduction to Our Engineer to Order or Engineered to Order or Engineering to Order Definition Text Introduction (Skip if You Watched the Video) Engineer…

How to Best Understand the Forgotten Supply Driven Supply Chain

Executive Summary Demand-driven supply chains are far more promoted than the almost unheard of supply-driven supply chains. To understand supply driven supply chains, one must understand locked in production. Supply-driven supply chains mean understanding managing contracts and understanding co-products. Introduction to Supply Sided Supply Chains A demand driven supply chain is considered the right approach…

How to Best Estimate The Costs of Attaining Fill Rate

Executive Summary Service level has two primary measurement methods, order fill rate, and case fill rate. Companies estimate the fill rates they achieve incorrectly. Introduction There is no hard and fast rule on how high a fill rate should be. Many companies set their fill rate as part of a strategy to differentiate themselves and…

To Whom Should Supply Chain Planning Report?

Executive Summary Who supply chain planning reports to versus who it should report to? The current problem is the time horizon orientation of supply chain planning. Introduction to Who Supply Chain Should Report I was recently asked where a potential newly created supply chain-planning department should report. Online you can find answers to the question…

How to Best Understand Subcontracting and Contract Manufacturing

Executive Summary Subcontracting with a contract manufacturer is a specialized workflow within subcontracting. We cover the relationship between OEM and contract manufacturer. Introduction (Skip if You Watched the Video) Contract manufacturing has grown tremendously in many areas, from electronics to food and pharmaceuticals. Subcontracting allows companies with no interest in participating in manufacturing or companies…

How to Appreciate The Four Supply Planning Threads and Their Timing

Executive Summary There are four major supply planning threads which are distinct from planning runs. We also cover how a rough schedule or rough plan differs from a detailed schedule and S&OP, as well as the deployment plan, redeployment plan, and the timing of various supply planning threads as well as the differences between the…

How to Best Understand Supply Chain Multisourcing

Executive Summary Multisourcing is the use of sourcing from multiple providers and uses logic to make a selection. We cover how multi-sourcing works. Introduction Within supply planning systems, in most instances, single locations are assigned to fulfill the demand of internal locations. Multisourcing is the opposite of this and can mean the fulfillment of requests…

Planned Orders and Purchase Requisitions and Their Deletion

Executive Summary A Planned Order or a Planned Production Order is different from a Purchase Requisition. How Purchase Requisitions sent to outlier locations, and how can one determine if Purchased Requisitions should be in APO? Video Introduction: Understanding Planned Orders Text Introduction (Skip if You Watched the Video) There is confusing terminology used in SAP…

The Connection Between BOMs, Routings, Work Centers in ERP and PPMs, PDSs in APO

Executive Summary There are connections between the BOM, routing, and work centers in PPMs and PDSs in PPDS and SNP. This article will cover these connections, set up these elements, and other features such as using the PDS versus the PPM for subcontracting. Video Introduction: PPMs, PDSs, and Resources Text Introduction (Skip if You Watched…