{"id":11633,"date":"2018-06-20T09:00:36","date_gmt":"2018-06-20T16:00:36","guid":{"rendered":""},"modified":"2023-07-17T12:41:47","modified_gmt":"2023-07-17T19:41:47","slug":"respond-intelligently-to-changes-in-supply-and-demand","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/manufacturing-and-mobility\/2018\/06\/20\/respond-intelligently-to-changes-in-supply-and-demand\/","title":{"rendered":"Respond intelligently to changes in supply and demand"},"content":{"rendered":"

Almost one in every two business leaders say that ineffective business processes impair their ability to plan, forecast, and budget.i<\/span> Planning processes can take upwards of a month, and by the time plans are built, they are based on outdated data with little connection to current business conditions. Because of time and information constraints surrounding existing planning processes, companies struggle to maintain the agility necessary to take advantage of opportunities and mitigate risks.<\/p>\n

When business moves so quickly, how can manufacturers be sure they are making the right decisions? Imagine a world where intelligent, agile, and collaborative business planning empowers manufacturers to make profitable decisions in real-time. Isaac, Melinda, and Jake live in this world and work at Company AI. Let\u2019s look at how the three of them leverage a premier AI planning platform to automatically analyze real-time data and deliver insights where they\u2019re most needed, enabling manufacturing agility and driving profitability.<\/p>\n

Recognize and automatically propagate new opportunities across the organization\u00a0\u00a0<\/h2>\n

\"Man<\/p>\n

Isaac, a sales lead at Company AI, sees an email from one of his accounts while walking into his office one morning. The customer wants to know if Company AI can fulfill an order, as another manufacturer can\u2019t meet demand going into a busy holiday season. Isaac knows this is a golden opportunity but only if his company\u2019s production line can increase supply without dramatically raising costs.<\/p>\n

Isaac opens his Integrated Business Planning solution from his phone and quickly makes a note that the opportunity is there if his company can manage the costs of increasing supply. As soon as Isaac creates the notification, the system recognizes key words and alerts the relevant departments.<\/p>\n

Match supply and demand to ensure production stays profitable\u00a0<\/h2>\n

\"woman<\/p>\n

In production, Melinda receives the notification. As a demand planner in the production department, it\u2019s Melinda\u2019s job to make sure the production upsurge won\u2019t have a negative impact on the company\u2019s current baseline plan. After seeing Isaac\u2019s note, she creates a new what-if scenario to see what would happen if the company doubled production.<\/p>\n

Once she\u2019s entered the necessary information, Melinda saves her new what-if scenario and the system automatically alerts Jake\u2014the appropriate supply planner. He sees the new what-if scenario and immediately runs a supply\/demand match algorithm that shows how Isaac\u2019s new sales opportunity would affect the supply chain. The algorithm models material, capacity, lead-time constraints, and costs across the entire supply chain. It then gives him clear predictions of the added supply\u2019s total costs and the gross profit of the opportunity.<\/p>\n

In this case, it\u2019s clear that this is a good opportunity\u2014the upsurge in production will cost Jake\u2019s supply chain an additional $900k, but the company stands to make around $7m. Jake responds to Isaac\u2019s original note that it would be profitable to move on the opportunity.<\/p>\n

Move quickly to take advantage of profitable opportunities\u00a0<\/h2>\n

\"Manufacturing<\/p>\n

It\u2019s now late morning, and Isaac is thinking about where to grab lunch when he gets an alert from Jake. Isaac sees that both Melinda and Jake have run the numbers, and he now has the approval of both production and supply chain to move forward with the production increase. He opens the email he received earlier that morning and confidently responds to his customer that his company is happy to fill the shortage.<\/p>\n

An integrated business planning solution to help your business\u00a0<\/h2>\n

In the above example, Isaac, Melinda, and Jake were able to quickly recognize an opportunity, predict its effect on supply and demand, and determine profitability through their Integrated Business Planning solution. For companies that want to make the most of their opportunities, the benefits of an intelligent, agile, and collaborative planning solution are obvious.<\/p>\n

o9 Solutions, Built on Microsoft Cloud technology, offers a powerful integrated planning solution built on a premier end-to-end planning platform. This solution enables companies to increase operational agility, intelligence, and collaboration and expand planning functionalities even further as business needs grow. To find out more about the o9 Solution, check out the solution on Microsoft AppSource<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This blog follows one day in the life of three business decision makers as they collaborate and analyze the supply and demand consequences of a new order request.<\/p>\n","protected":false},"author":843,"featured_media":11787,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ms_queue_id":[],"ep_exclude_from_search":false,"_classifai_error":"","_classifai_text_to_speech_error":"","footnotes":""},"categories":[1496],"post_tag":[],"content-type":[1483],"coauthors":[4310],"class_list":["post-11633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing-and-mobility","content-type-thought-leadership"],"yoast_head":"\nRespond intelligently to changes in supply and demand - Microsoft Industry Blogs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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