Supply Chain Design and Total Landed Cost Sourcing
This solution is designed to help industrial companies optimize the structure of their supply chain, to optimize the positioning and size of inventory buffers throughout the supply chain, and to make total landed cost-based sourcing decisions.
Supply Chain Network Design and Optimization enables planners to construct and manipulate “what-if” scenarios, combining linear programming, mixed integer programming, and discrete event simulation. It provides a means to quickly represent complexities and interdependencies of the entire supply chain, and assess the merits of strategic alternatives.
Inventory Optimization helps planners assess and segment demand, analyze the supply base, and factor in business goals to design detailed inventory configurations that strike an optimized balance between cost and service. This workflow recognizes both supply and demand variability and can be used to engineer multi-echelon postponement strategies.
Total Landed Cost Sourcing helps procurement, logistics, finance, and supply chain design work together to make optimal parts sourcing decisions that take into account not only part piece-cost but also additional supply chain factors such as inbound lead times and associated variability; supply chain risk; and protection of supply; logistics costs and risk; and inventory costs.
Demand and Pricing Optimization
Industrial companies are integrating demand-oriented business functions into a flexible, responsive process called continuous demand management.
Continuous demand management involves closing the loop between OEM sales volume and option forecasting; dealer demand collaboration; demand sensing analytics and notifications; as well as incentives management and optimization. These demand management functions are being integrated with various supply management functions into a dynamic sales, inventory, and operations (SIOP) process.
i2 has designed solutions for:
Sales Volume and Option Forecasting is designed to create volume forecasts by segment, model, and series for various countries and regions. Key options may also be forecasted at this level.
Demand Collaboration is designed to enable an OEM sales organization to collaborate with regions, customers, and dealers to establish and reach consensus on sales volume forecasts and product commitments. The collaboration process includes the establishment of a volume forecast, agreeing to that forecast, and commitment to specific vehicles.
Incentive Management and Optimization is designed to establish the optimal size and allocation of the incentive budget, as well as distribute the budget. The solution can collaborate with sales forecasting.
Demand Sensing Analytics and Alarming is designed to incorporate demand sensing–what customer really wants–inputs into the forecasting process. It is designed to enable organizations to understand where actual orders are deviating from demand forecasts—and determine corrective actions.
Supply, Distribution and Factory Optimization
Industrial manufacturers are moving toward integrating various supply-oriented business functions into an overall flexible, responsive process called continuous supply management. This can involve closing the loop between sales volume and option master planning; model-option and material forecasting; as well as factory planning and scheduling.
These supply management functions are being integrated with the continuous demand management functions into a dynamic sales, inventory, and operations (SIOP) process. Continuous supply management is also designed to be incorporated with customer order fulfillment functions for dynamic scheduling and order promising.
i2 has designed solutions for:
Supply Chain Master and Distribution Planning involves the creation of optimized production, materials, inventory, transportation, and distribution plans, as well as sales allocations based on inputs from sales forecasting and business and financial plans.
Model-Option/Material Forecasting includes configurable products including engines, earthmoving and farming equipment, as well as other industrial products may require forecasting at two levels: the base configuration, and the attachment or options. The solution can allow sales volume forecasting and detailed option/attachment forecasting to be performed in two different organizations, but become part of a business process workflow supported by a single technology infrastructure.
Factory Planning is designed to create constrained master production schedules and coordinate material release into production using just-in-time (JIT), continuous work in progress (CONWIP), and other techniques, as well as balance production around bottlenecks.
Sequence-Driven Material Coordination is designed for assembly environments that are fed by manufacturing operations. The solution is designed to optimize the assembly sequence in concert with feeder manufacturing operations to create a synchronous material flow environment.
Production Scheduling is designed to produce optimized detailed schedules for single and multi-stage scheduling problems, often where there is a choice of multiple resources in each stage. It is designed for both discrete and process environments and considers a variety of constraints or rules including changeover transition times, routing requirements, resource preference, sequencing, demand priority, and concurrent states.
Engineer-to-Order Planning and Scheduling meets requirements that are typically not met by solutions designed for other production environments. This solution is designed to provide the ability to manage multiple concurrent projects, optimizing throughput across constrained equipment, facilities, and human resources while improving order quoting and delivery reliability.
Assembly Sequencing involves the creation of optimized sequences for assembly, which consider detailed capacity, product mix, labor, transportation, and other constraints. Assembly sequencing is designed to create a balanced assembly flow while optimizing throughput.
Sales and Operations Planning
i2 offers a diagnostic study (S&OP Diagnostic Service) to help companies analyze S&OP process and system capabilities and S&OP metrics, using i2’s diagnostic questionnaire. Root-cause analysis is then performed on the identified problems. The resulting recommendations can include business process improvements as well as the i2 Agile Business Process Platform-based S&OP solution. It can encompass solutions for demand and pricing optimization, supply, distribution and factory Optimization, visibility and execution.
Sourcing Strategy and Planning
Strategic sourcing initiatives are designed to minimize the total cost of ownership of materials, not just reduce prices or process costs. The goal of these efforts is to optimize the sourcing strategy by category or commodity, through balancing the need for cost reductions with risk factors. In addition, supplier relationships must be managed to ensure quality and performance.
In complex manufacturing environments there is a need to manage large systems and outsourced assemblies. In addition, with a shift towards globalization, there is a need to evaluate alternative global sourcing decisions based on lead time, reliability, and logistics considerations.
i2 has designed solutions for:
Spend Analysis is designed to allow optimization of future sourcing decisions and cost reductions by commodity or supplier. Further, the solution can support the customized views and multi-attribute presentation of data by supplier, part, time, or organization.
Total Landed Cost Sourcing helps procurement, logistics, finance, and supply chain design work together to make optimal parts sourcing decisions that take into account not only part piece-cost but also additional supply chain factors such as inbound lead times and associated variability, supply chain risk, as well as protection of supply, logistics costs and risk, and finally inventory costs.
Supplier Performance Management is designed to measure the supply base's current performance, as well as track that performance against customer-defined goals to support new sourcing decisions. The solution can enable the creation of a standard set of metrics and normalization methods, ensure that data is collected, and create supplier performance scorecards.
Reuse and Product Cost Management
Discrete manufacturers and suppliers of complex products are under intense pressure to reduce their cost structure, while providing better products to their customers.
Reuse management is about the reuse of designs, as well as knowledge of cost/price of parts, process benchmarks, and supplier capabilities. Reuse management has become an important initiative within most organizations. However organizations still view it as an engineering-led initiative, even though one of the key drivers for reuse is to support a lean cost structure for products.
i2 has designed solutions for:
Reuse Catalog Management provides the ability to classify and manage part and supplier information with the ability to search and compare parametric data for analysis.
Product Cost Analysis can enable Industrial OEMs and large suppliers to develop and execute cost reduction initiatives to reduce direct material spend.
Design for Supply can enable designing products with an understanding of supply chain constraints. This requires the ability to provide enterprise visibility, as well as the ability to represent these constraints as attributes that can be filtered and analyzed during the design phase. An expanded catalog solution can incorporate these attributes within the same framework for engineers to gain rapid visibility to this information.
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