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Solution Brief: Sales Inventory and Operations Planning

SimFlex is a suite of value chain planning tools enabling companies to design, test and deploy robust and lean solutions supporting strategic, and recurring operational business decisions. SimFlex solutions provide significant cost savings and increased sales through optimal value chain design, efficient asset utilization, improved service levels and greater agility.


Sales Inventory and Operations Planning (SIOP)#

SimFlex Sales Inventory and Operations Planning (SIOP) solution enables companies to analyze current and projected value chain performance from a holistic perspective, and solve a wide range of business challenges using multiple simulation and optimization technologies. SimFlex facilitates organizational alignment between business goals and plans while enabling rapid responses to ever changing business conditions.

Solution Capabilities#

SimFlex SIOP solution enables companies to:

Analyze current and projected performance:

SimFlex Business Intelligence (BI) tools allow the impacts of changes in the current operating conditions to be quantified and analyzed via dashboards / scorecards containing key operating and financial indicators. The solution provides multi-dimensional analyses enabling concurrent focus on costs, assets, inventory, service levels and financials. Additionally, SimFlex incorporates SCOR® metrics to facilitate common language among the value chain partners.

Optimally solve bottlenecks and investigate what-if scenarios:

The participants of the SIOP teams can apply scenario planning using a combination of both optimization and 'what-if' simulation technologies. This creates a platform for consensus on how to optimally respond to the changing conditions and best utilize assets, eliminate bottlenecks, avoid lost sales, minimize costs, and optimize inventories, using the same scorecards to analyze the projected business performance of their actions.


SimFlex enables multi-criteria planning and optimizes across various decision variables to ultimately deliver value.

Gain Cross-Functional Visibility and 'Extended Enterprise' synchronization:

SimFlex is a multi-user, enterprise-based platform offering collaboration capabilities between different organizational functions, and value chain partners. Unlike with fragmented spreadsheets, different teams utilize assumptions and data that resides in one common model framework. This creates transparency and also mitigates the risk of knowledge being limited to certain teams or even individuals within the organization.

SimFlex Differentiation#

Suite of Value Chain Planning Tools:

SimFlex is a toolkit for end-to-end value chain planning, with multi-dimensional analysis capabilities and incorporating Simulation, Optimization and Business Intelligence technologies. SimFlex enables a SIOP process which incorporates value chain partners, suppliers and customers.



Data Management:#

SimFlex data model is an integrated model with unified inputs and outputs. It enables a top-down modeling approach as well as bottom-up, considering management and planners perspectives, and also allowing the best approach to be taken for the planning problem at hand. SimFlex data exchange module enables rapid integration to a variety of data sources like ERP, data warehouses and spreadsheets. SimFlex solutions are also 'Powered By SAP NetWeaver®' certified, which facilities easy data exchange with SAP. Recurring data updates are automated through mapping schemes with the various sources. For manual updates, a variety of user-friendly options like filtering, table customization, multi-edit, graphical editing of values and copy/paste allow the users to easily manage and modify the data.

Business Logic and Capabilities:

The comprehensive set of SimFlex solution engines empowers an organization with in-depth analysis and visibility to trade-offs between various business scenarios. The modeling capabilities cover all realworld requirements. SimFlex is an enterprise software supporting multiple endusers and thus offers visibility and a unified platform to share data and information

Key Features#

SimFlex maintains a master model of the existing value chain, including suppliers, manufacturing sites, logistics centers and customers in different geographies. An update or change, like a new sales forecast, triggers a new SIOP process, where SimFlex projects future financial and operational performance with the existing value-chain. Potential bottlenecks or constraints are identified and eliminated by solvers or 'what-if' simulations for revised optimal plans. Key features are:

  • Multi-level cost analyses
  • Complete internal and external service level metrics

  • Financial indicators and dashboards
  • Custom user-defined metrics, if required
  • SCOR® Metrics
  • In-depth production, capacity and inventory analyses
  • Standard or user-defined automated reporting
  • Multi-level BOM
  • Multi-company, Multi-echelon models
  • Advanced forecasting and demand modeling
  • Aggregated or detailed production and capacity modeling
  • Multi-currency activity-based costing and pricing
  • Finance, tax, duties and investments
  • 'Real World' transportation and delivery options including schedules

Benefits#

SimFlex SIOP solution has typically resulted in increased revenues of 1-5%, accelerated inventory turns by up to 100%, decreased operating costs by 2-15%, with improved profit margin and return on assets. Further benefits include increased transparency, collaboration between stakeholders, and higher productivity with fewer resources through an integrated and streamlined process. Proactive management of risks and uncertainties help in aligning business goals and plans while enabling rapid responses to changing business conditions.

Summary#

One of the key enablers of the next generation SIOP process is technology. SimFlex facilitates collaboration between functions, and provides an insight and solving capability previously unavailable to supply chain planners and decision makers. SimFlex SIOP solution enables companies to meet their business goals through reduction in operating costs, efficient asset utilization and greater responsiveness.



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