Monday, October 17, 2016

Product Shortage During NPI

Your marketing department spent $15M to increase a burning desire for your AirD drones. Your retail partners, sales, and business analyst expect demand to exceed forecast. In particular, Kansas City is going to be hit hard.

The forecast of 98K was off. Demand has been updated to 139K units. Your WMS shows 56K units on hand. Nearby warehouses show 12K extra units in OKC, 39K extra units in STL. The logistics team can ship those over without an expedite. Good. But you are still 32K short. What to do?

Luckily, your ERP system is integrated. You can see in the Transport module that 12K will arrive in 1 day (by air), 3K more in 3 days (by truck), and 50k in 5 days (by ocean). You snag the 12K+3K units, but you are still 17K units short. Your ERP system is also integrated with the Factory MES - and with a production rate of 100K/week and ship date of 4 days away, you can snag the remaining 17K units and expedite air ship. All this is only possible with a unified ERP system.

In order to address the business pain of a product launch shortage, multiple ERP systems have to work together to alleviate the shortage. Here, the Warehouse, Transport, Factory, and Supply modules are used in unison to meet the 32K shortfall of AirD drones.

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