Call Us: US - +1 845 478 5244 | UK - +44 20 7193 7850 | AUS - +61 2 8005 4826

Integration von Advanced Planning System

Project supply chains — a different set of challenges

Demand planning and S&OP
As each project is different, the scenario analysis for determining the cost and risk associated with each project needs input all the way up the supply chain, including to vendors. As project supply chains are complex and multi-national, this is a big challenge. 

The role of demand planning in the S&OP process is also fundamentally different.  The demand plan is not used to set a target stock level that supply must strive to reach. Also, it is not used to identify short-term service issues. This is because the order portfolio acts as both the short-to-medium-term expression of demand as well as the driver of short-term priorities. The factories are not as concerned with the accuracy of demand planning as they are with having visibility in the Customer Relationship Management system to see what order dates are due and from which customers. There is a need to have data that is correct and reliable, in a field where data management is notoriously difficult. 

They are the result of months or even years of bids and negotiations. Statistical models don’t apply as readily when there isn’t a mass from which to draw wisdom, and it is difficult to try and make sense of historical data and draw simple assumptions and conclusions from it. The only way to choose potential projects is to have close collaboration with the commercial teams.