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Why Demand-Based?
SCM Methodologies from MRP2TM to SCORTM do not cover important areas of the SCM such Sales, Marketing, Trade Marketing, Systems (Planning vs. Transactional, etc.), or even the role of the Processes (such as Procurement where its role is usually contained to the Horizon of the last Planning Requisition rather than the entire Planning Horizon).
Also these Methodologies have, usually, a consensual character rather than a linear (from the Market) which looses the focus often (Flat Earth Syndrome).
These and other reasons is why the Demand-Based SCM approach is gaining preference.
The GCS2 is a Demand-Based Supply Chain Management (SCM) Methodology that
Aligns the Entire Supply Chain Management Activities Towards Market Requirements Planning
SCM Methodologies from MRP2TM to SCORTM do not cover important areas of the SCM such Sales, Marketing, Trade Marketing, Systems (Planning vs. Transactional, etc.), or even the role of the Processes (such as Procurement where its role is usually contained to the Horizon of the last Planning Requisition rather than the entire Planning Horizon).
Also these Methodologies have, usually, a consensual character rather than a linear (from the Market) which looses the focus often (Flat Earth Syndrome).
These and other reasons is why the Demand-Based SCM approach is gaining preference.
The GCS2 is a Demand-Based Supply Chain Management (SCM) Methodology that
Aligns the Entire Supply Chain Management Activities Towards Market Requirements Planning
Our Mission
We define the ability to continuously having Supply Chain control to achieve the SCM objective which is to minimize excess inventory and out-of/insufficient-stocks . However, control is not the same as authority. This axiom is usually learnt too late. It is also, by then, an expensive piece of information. When applied to Supply Chain Management it can be a very critical proposition: excess inventory and out-of-stocks due to unmanaged or inefficient demand and/or supply planning will sooner or later result in very unpleasant surprises.
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We define the ability to continuously having Supply Chain control to achieve the SCM objective which is to minimize excess inventory and out-of/insufficient-stocks . However, control is not the same as authority. This axiom is usually learnt too late. It is also, by then, an expensive piece of information. When applied to Supply Chain Management it can be a very critical proposition: excess inventory and out-of-stocks due to unmanaged or inefficient demand and/or supply planning will sooner or later result in very unpleasant surprises.
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The GCS2 Assumes that SCM Planning, and Execution (Transactional) Systems Should Feed Each Other But As Separate Entities
Supply Chain Management pioneers from Plossel to Wight gave us a magnificent body of theory even though they referred to it as Production & Inventory Control (PIM), MRP, MRPII, etc. However, there is much that they left undefined such as: what should be the right periodicity? weekly? By-weekly? monthly?, what structure should the S&OP have?: should it be in-line?, consensual?), or even: how should the Demand be integrated and structured?? Or even: what should its role be? Should Sales sell what it can and hope that there is enough of the right inventory? Or should try to achieve the plan and work out ? Furthermore the system resources were limited in the 60’s and 70’s so it was never addressed as it is now. The proliferation of specialized systems has increase at a rate equal to technology. From WMS, CRM, RFID, etc., to Cloud-Based applications. However, one of the most difficult decisions in this area is how to visualize the SCM Planning system with the ERP (transactional) system. From the early stages with the advent of Legacy systems and the standardization of accounting it was thought that the same (consolidation) could be done with the other areas of the enterprise and, therefore, the ERP. However, as the ERP developers have been finding out through experience they are not the same entities and cannot be consolidated well. The fact that different SCM model designs requires serious customization of the SCM Planning system led to the development of separation of their entities - although united - such as SAP’s APO.
Supply Chain Management pioneers from Plossel to Wight gave us a magnificent body of theory even though they referred to it as Production & Inventory Control (PIM), MRP, MRPII, etc. However, there is much that they left undefined such as: what should be the right periodicity? weekly? By-weekly? monthly?, what structure should the S&OP have?: should it be in-line?, consensual?), or even: how should the Demand be integrated and structured?? Or even: what should its role be? Should Sales sell what it can and hope that there is enough of the right inventory? Or should try to achieve the plan and work out ? Furthermore the system resources were limited in the 60’s and 70’s so it was never addressed as it is now. The proliferation of specialized systems has increase at a rate equal to technology. From WMS, CRM, RFID, etc., to Cloud-Based applications. However, one of the most difficult decisions in this area is how to visualize the SCM Planning system with the ERP (transactional) system. From the early stages with the advent of Legacy systems and the standardization of accounting it was thought that the same (consolidation) could be done with the other areas of the enterprise and, therefore, the ERP. However, as the ERP developers have been finding out through experience they are not the same entities and cannot be consolidated well. The fact that different SCM model designs requires serious customization of the SCM Planning system led to the development of separation of their entities - although united - such as SAP’s APO.
Customers require complete solutions that are classical but also innovative
Supply Chain Management Consulting has reached nowadays a level of confusion which is often not conducive to problem solving and, instead, results in significant misallocation of capital and resources. We find, more often that expected, clients with misconfigured ERPs mainly because they were sold as solutions incompatibles with their supply chain models (planning within the transactional system, and having to rely on spreadsheets after expensive implementations, etc.), or using methodologies that did not integrate the Demand and Supply segments (mostly because the do not include Sales, Marketing, etc. as integral part of the Supply Chain management Methodology), or, even further, Procurement and other processes have not been well designed (includes and/or excludes responsibilities).
In Supply Chain Management Consulting the size of the Consulting Company or its name recognition really does not matter, experience and proven results do. Our SCM demand-based methodology and experience will give you the knowledge and the tools to achieve control of your supply chain.
scm-solutions.com uses the GCS2 which is a Demand-based Supply Chain Management Methodology which although using the MRPII bases (classic) has been proven to be effective because it is comprehensive and flexible to include the entire Supply Chain and takes into account future changes to it.
Supply Chain Management Consulting has reached nowadays a level of confusion which is often not conducive to problem solving and, instead, results in significant misallocation of capital and resources. We find, more often that expected, clients with misconfigured ERPs mainly because they were sold as solutions incompatibles with their supply chain models (planning within the transactional system, and having to rely on spreadsheets after expensive implementations, etc.), or using methodologies that did not integrate the Demand and Supply segments (mostly because the do not include Sales, Marketing, etc. as integral part of the Supply Chain management Methodology), or, even further, Procurement and other processes have not been well designed (includes and/or excludes responsibilities).
In Supply Chain Management Consulting the size of the Consulting Company or its name recognition really does not matter, experience and proven results do. Our SCM demand-based methodology and experience will give you the knowledge and the tools to achieve control of your supply chain.
scm-solutions.com uses the GCS2 which is a Demand-based Supply Chain Management Methodology which although using the MRPII bases (classic) has been proven to be effective because it is comprehensive and flexible to include the entire Supply Chain and takes into account future changes to it.
State of SCM in the Americas
(In development)
SCM Projections for the Americas
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(In development)
SCM Projections for the Americas
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