These planners use SO99+ to focus on handling exceptions rather than planning manually. Cyr, France-where global planners now supervise the worldwide distribution of their product's assortment and balance the supply and demand for it. Today we have two factories-one in Steyr, Austria, and one in St. One production line at a time To ease SKF through this ambitious transformation, we are introducing our new planning process-and all the associated changes for adjacent departments like customer service, manufacturing, controlling, and human resources-one production line at a time. The planning tool was in place, but the journey to transform the whole of SKF had just begun.
For example, when we face supply shortages, we are now able to make informed decisions about which warehouses to prioritize sending inventory to, minimizing the impact on customer service levels.
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Crucially the software lets us optimize inventory levels against desired service levels so that we are able to compete effectively in our industry without incurring excessive storage, transportation costs, and obsolescence. We can now more easily sense demand deviations and address them more proactively. To gain the needed visibility to make these trade-offs and feed accurate, timely data into our new planning system, we immediately realized that we needed a 'digital twin' of our supply chain, or a digital model that's an exact copy of the entire supply chain. The digital twin Our supply chain's large size and complexity means that it's difficult to consistently make optimal trade-offs at the planning level between 'cash' (such as safety-stock levels and goods in transit), 'cost' (such as staffing and output of production and transportation methods) and 'customer' (service levels). The only way the global planner could do it efficiently was if we achieved a much higher degree of automation throughout our supply chain, which would be enabled by what's known as a 'digital twin' of the supply chain. Orchestrating all the associated activities, however, is a lot of work. The global planner would have end-to-end responsibility for these flows from analyzing customer demand up to submitting purchase orders to suppliers.
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