Purchasing and procurement organizations complain about their lack of control over the supply chain without realizing that the supplier behavior is the result of their actions. Suppliers who are subject to this constant bull-whipping will start shipping what they can when they can. So it is not uncommon for suppliers to ship partial quantities to meet the initial deadline and follow up with balance quantities over a period of time.
Laksham explained the easiest way to change the supplier’s behavior is to provide consistency and visibility into the process, “Consistency is to standardize the lot size, lead time, and committed order. When the supplier provides a lead time, it is always proportional to certain lot size. For example, the supplier may be able to deliver 100 pieces of Part A in 15 days. However if MRP sends out an order for 500 pieces with 15 days lead time, it is not practical to expect the full shipment on time.” Ultriva provides a clear process for achieving consistency and visibility.
To read the entire blog, go to: http://web.ultriva.com/
Ultriva’s (www.ultriva.com) cloud-based platform leverages and seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment model. Ultriva, based in Cupertino, CA, implemented a global demand driven manufacturing model by providing full visibility, scheduling, and sequencing of production of customer orders. The need for a collaborative transactional portal is essential and E2E (End to End) Pull allows large multi-national manufacturers to actively collaborate with customers for actual demand and synchronize with suppliers for replenishment. E2E Pull offers a better solution to balancing supply with customer demand through procurement strategies, materials and inventory policies tied to actual demand signals. Many suppliers want to provide sufficient service levels to customers and turn supply replenishment and synchronization into a competitive advantage. The company’s global footprint is increasing rapidly with implementations in wide variety of industry sectors and enterprises such as ATK, CareFusion, Emerson, Ingersoll Rand, McKesson, Magellan, Regal Beloit, Thermo Fisher and more. Follow Ultriva on Twitter at @Ultriva.