Solve the Enterprise Challenges: Supply Chain Planning

Enterprises are large entities that run production on a large scale. Because of mass production, the processes that the company does are complex. Because of this complex company processes, the company does supply chain planning.

Supply Chain Planning

Supply chain planning is the activity of planning a product from raw material to finished good ready to sell. Supply chain planning includes demand planning, production planning, supply planning, and sales & operations planning. Each of the steps helps to optimize the production process.

However, supply chain planning comes with its own challenges. One of them is the difficulty in forecasting demands. The difficulty arises because of the data that the company has are incomplete or inaccurate. Another case would be because they have multiple data of the same thing because it is not documented properly. These cases happen because the data is sorted and compiled manually. Which means the chances for human error increases. And this is commonly found in the companies.

Vendor Managed Inventory

Planning with vendor managed inventory is also a challenge that the enterprise face. If done manually, the enterprise may rely on 1 supplier only per item because it is complicated to source from more than 1 supplier. Coordinating with the vendor is one of the difficulties. The company has to constantly contact the vendor back and forth to order the goods, when the goods are being delivered, and when the stock runs out. The company has to do this because they are not aware items’s statusfrom the vendors.

Part Obsolescence

Another challenge that enterprises face while doing supply chain planning is part obsolescence. Because the parts needed for production are unavailable, the production could not proceed. The halting of production means that deadlines will be pushed back. The deadlines being pushed back could potentially generate a loss. Part obsolescence is caused by a lack of communication from supplier to factory or long lead times.

Inadequate transparency and data sharing with suppliers and customers can pose a challenge. Without transparency and data sharing, things will be hard to coordinate. Because the company is not aware stocks’s status of the vendor has and the vendor is not aware of the company’s needs. This makes it challenging for the enterprise to do supply chain planning.

The enterprise has to constantly be at their feet in order to stay at the top of the competition. So they need agility and effiency improvement to balance inventory, lead times, and demand. If they are not agile, the production process will not be smooth. Because the management of inventory correlates to the flow of production.

To answer the challenges of the enterprise, Infor offers the solution to being an integrated ERP system. Infor LN enables to see the profit impact of the supply chain decisions in real-time. Infor LN is also able to optimize end to end of the production processes, from forecast to execution. Analyzing relevant constraints, supply chain, and manufacturing options to make the best use of the assets is also an advantage Infor LN has. Infor LN also improves communication because Infor LN is able to collaborate more effectively with customers, partners, and suppliers using the power of social networking and the Internet. Another advantage Infor LN has is creating an optimal supply chain network and adapt the network to be on track with changes in the business.

In conclusion, despite having challenges such as difficulties in forecasting demands, planning with vendor managed inventory, part obsolescence, inadequate transparency, and data sharing with suppliers and customers, and the need for agility to balance inventory, lead times, uptime, and demand they are solvable with Infor LN.

For more information about the solution please contact our phone at +62 21 50 919 725 or WhatsApp +628111221789 (Chat Only) or our email at This email address is being protected from spambots. You need JavaScript enabled to view it.