The COVID-19 pandemic has already caused widespread disruptions to supply chains across the world including India and very likely to continue to do so for a longer time horizon. Organizations are seeing disruptions at the demand side (e.g. rationalization of SKUs, shift in demand patterns), supply side (e.g. manpower availability) and in the logistics arena as a result of multiple factors including lockdowns put in place by the governments.
While the business leaders and especially those responsible for the supply chain function have been busy reacting to the current situation for the past few weeks, they face challenges in comprehending the evolving scenario in order to be able to respond to it.
Also, given the extremely volatile state of the business, it is now imperative for the organizations to decide on their inventory investment carefully. In normal times, past demand is considered a reasonably good indicator of the future demand (the core premise of forecasting driven planning). However, in the present scenario and potentially for a foreseeable future, the past demand may not be a good indicator of the future demand. Here the business leaders can consider the principles of "Demand Driven" by driving their business on realized demand (sales orders) instead of forecasts, which inherently has errors.
SAP's IBP solution has offerings that can help businesses address the above challenges and pressing needs.
Please join us for a webinar along with experts from PwC to gain insights around how to simulate, collaborate, take critical decisions and operate effectively during these volatile times leveraging the SAP IBP solutions around S&OP and DDMRP (Demand Driven MRP).