Supply Chain Suite for Consumer Electronics
Demand Replenishment, Supply Demand Matching
In addition, with margins under constant pressure, managing costs and rapidly responding to changes across the extended supply and demand chain is critical to maintaining profitability. To counter cost pressures, many retailers and channel partners of these consumer electronics manufacturers have adopted replenishment models like vendor managed inventory (VMI) or channel managed inventory (CMI). These trends have resulted in inventory build up at VMI hubs, inability to execute these programs on a sustainable basis resulting in increased lead times, missed revenue opportunities on both replenishment and non-replenishment channels, stock outs at key channel partners and the inability to manage fulfillment of new products.
Valdero said its Demand Replenishment enables manufacturers to cope with these issues by allowing them to create and manage inbound replenishment signals by aggregating and rationalizing demand and POS information from channels; intelligently allocate supply to replenishment signals using business rules; and integrate with enterprise resource planning (ERP) systems to execute order shipment and tracking shipments back into the channel.
Finally, with short product lifecycles and retailer-specified sales windows the norm, time to market and time to volume are manufacturers' driving concerns in this sector, resulting in increased price protection and stock rotation penalties, inventory build up at channel partners and missed revenue opportunities.
According to Valdero, the provider's Supply Demand Matching enables manufacturers to tackle these challenges by helping them to aggregate demand across multiple channels, tiers and POS locations; prioritize demand using business rules to maximize business value; allocate supply to prioritized demand to minimize shortages and maximize order fulfillment performance; simulate the impact of unexpected demand changes and end-of-quarter hockey sticks; and create a personalized dashboard to analyze demand patterns and measure fulfillment performance -- visually and by exception; and finally,
According to Valdero, its supply chain applications have demonstrated their ability to help manufacturers lower excess and obsolete inventory up to 95 percent, reduce order cycle time up to 50 percent and reduce operations cost up to 30 percent, significant benefits in the price- and brand-sensitive consumer electronics industry.