The POW-er of making the right choices during scarcity
COVID-19 is hampering logistics worldwide, be it shipping your product out or receiving enough stock from your vendor. This logistical problem hits a lot of companies, small or big, and creates a constraint in terms of finished goods distribution. Most Sales and Supply Chain departments need to answer the following question; how to deploy our limited inventory while still keeping our promises and providing the highest value?
Answering this conflicting question is a puzzle that needs business input and system support. As more and more companies are moving towards an agile approach, flexibility and speed is required. Getting to a correct business input and setting the rules is hard and requires (flexible) people.
Systems, and in particular SAP, are rigid for business continuation. You wouldn’t want your system failing and not being able to ship out products for example. That rigidity however brings some inflexibility and increases throughput time if changes are required. In a situation like COVID-19 you want to be able to quickly adapt to a new situation and change your system where needed without disrupting business continuity.
A good solution would be to deliver the products only to high prio customers while also keeping inventory available for general customer satisfaction. This solution can be accomplished in a SAP system by means of Product Allocation. Based on a set of business rules you only promise what can be done, in terms of incoming and available inventory, keeping in mind the limitations of your (global) supply chain.
Just as I-Man, we can help you find the best fitting solution for this problem. InfinITy Business Consulting is deploying functionalities in end-2-end situations. In a next article we will dive into the details of Product Allocation in S4H with means of a use case. Do you recognize the inventory struggles or just want to know more on Product Allocation in general, feel free to contact us by any means possible.