Make-To-Stock (MTS) or “push” replenishment involves producing predetermined amounts of inventory based on forecasted demand. Companies today that operate with an MTS model struggle to make the correct product at the correct time in the correct quantities. Companies are interested in becoming demand-driven and driving product into the network based on actual consumer demand across all of their channels. Even more challenging is the fact that many MTS companies must simultaneously operate a Make-to-Order replenishment model as well. The cloud-based Real Time Value Network offers a powerful Best Practice Template for a demand-driven MTS or hybrid MTS/MTO environment that can give your company and entire supply network a competitive advantage.

Challenge: In the MTS environment, accurate forecasts and short system lead times are especially important. Most companies have already invested in systems and processes to increase forecast accuracy, reduce system related lead times, and reduce inventory, but have not received the anticipated returns. Furthermore, even the most operationally efficient MTS companies still experience either excess inventory or stock outs because they are constrained by the current technology environment.

Problems that ERP and current systems cannot solve:

• Cannot look outside the enterprise’s four walls to view consumer demand
• Vertical systems that can’t integrate critical demand, supply and logistics data.
• Long information lead times to translate demand from customers
• An inability to collaborate and coordinate domestic and international suppliers to replenish components and raw materials.
• Systems that cannot synchronize the logistics capacity to deploy the materials and finished goods.
• An inability to quickly mitigate inbound risks and outbound delivery constraints.

Solution: Connect to the Real Time Value Network and Subscribe to the MTS Replenishment Best Practice Template.

Some CPG clients are using the Real Time Value Network to deliver 99%+ “in store, in stock” service levels with less than 25 days of total finished goods inventory (including plants, warehouses, and retailer’s warehouses).

• Real time demand sensing and translation
• Customer VMI
• Daily demand and inventory data  optimizes tomorrow’s deployment,  manufacturing, , raw material, and transportation plans
• Supports MTS/MTO production planning concurrently (and in the same truckload)
• Supplier Collaboration and Managed Inventory
• Lean Replenishment
• Supply Chain Risk Management

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