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Optimize Limited Supply in Uncertain Times

UST Supply Chain Management Team

All the while demand volatility is increasing dramatically, forcing organizations to react and adjust their inventory and supply allocation strategies. This presents a significant opportunity for organizations who can deploy responsive supply chain capabilities.

UST Supply Chain Management Team

We have previously discussed the dramatic effect COVID-19 has had on the global supply chain. Organizations will have to stabilize supply as raw material and product shortages roil the entire supply chain.

The Challenge

Businesses continue to face three major challenges, made all the more acute by the pandemic

  1. Customer demand is hard to predict
  2. Stock supply is limited
  3. Within a planning cycle not every customer will get served in full

How can you ensure to serve the right customers or channels with constrained supply?”

Best run supply chains need to translate strategic and market goals into an intelligent product allocation strategy to ensure high quality of service and minimal disruption during a supply shortage

Product allocation serves as a bridge between the planning and order fulfillment process domains to primarily ensure inventory supply is being allocated and protected to the right channel or customers at the right time.

Our Solution: UST Flex iOM for Intelligent Allocation Management

During these times, possessing advanced available-to-promise (ATP) capabilities will become a critical differentiator. Organizations that use SAP to manage their order to cash and supply chain processes may not know that it lacks key features for allocation and order management.

UST Flex iOM successfully closes functional gaps of standard SAP Product Allocation, offering a unique solution add-on to the SAP (ECC, AFS, APO GATP, S4) platform for Intelligent Allocation Management. This includes:

  1. Allocation Quantity Calculation: Configurable algorithms to calculate period-level allocation planning based on customer, channel, and material prioritization
  2. Allocation Management Cockpit: Allocation cockpit for allocation planning and order exception management. It provides flexible, real-time allocation analysis and maintenance in response to changing demands and supply
  3. Order Management Cockpit: Order Management cockpit to allow for fast response and reassignment of order confirmations

While customers may be inclined to accept more delays than usual, organizations that more accurately control their ATP will emerge with a competitive advantage. Those who can deliver when they promise will be rewarded with ongoing business during the pandemic and long afterward.

In addition, business partner relationships are strengthened and enhanced through crises. You want your customers to feel like you supported them through trying times and were a solution, not a problem with which to contend.