Supply Chain Planning Selection

This Selection Guide will allow companies going through a supply chain planning system technology and supplier selection process to make faster and better decisions that best suit the company’s specific requirements.

Overview

Supply chain planning (SCP) solutions use complex algorithms, optimization techniques, and heuristics to solve supply chain problems that occur in the planning horizon (one week to one month for operational planning, one month to several months for tactical planning, and one year to multiple years for strategic planning).  While there are a variety of payback categories from the use of supply chain planning solutions, the ability to reduce inventories (raw material, work-in-process, or finished goods inventories, depending upon the solution) and effectively balance demand and supply are the central value propositions.

Part of the success of a supply chain planning system in driving cost savings and service improvements is based upon the maturity of this technology.  In theory, this maturity should make supplier selection easier.  In practice, SCP solutions exist on a complexity continuum spanning low cost solutions with limits on the depth of functionality provided, to highly functional, much higher cost solutions.  Further, different suppliers have developed special domain expertise in specific industries.  The potential business benefits and associated payback periods reflect these facts.

Supply Chain Planning System Selection Strategic Issues

ARC has been researching the supply chain planning market for decades and we know the issues:

• Functionality that supports all supply chain processes
• Supply chain optimization
• Understanding total cost of ownership
• Integration with business and material handling systems
• Native support for multiple forms of Automatic Identification
• Leveraging new technologies like Cloud, Social Media, and 3D Visualization
• Architectures based on object models
• Designs that maximize usability
• Reporting, event planning, and analytic capabilities
• Implementation support and training
• Supplier long term viability
• Identify long term visions
• Separate leaders from followers

This ARC Selection Guide will help you select the best available supply chain planning system to meet your needs now and in the future.