ARTICLES
E-collaborative planning- Systematic synergy
By Robin Trehan, B.A, MIB, MBA electronic business
E-collaborative planning is about joining the dots in
a circle and bringing in systematic synergy. It is about visualization
of the supply chain. Making sure 80/20 rule is upturned and companies
are spending 80% of time and resources on optimizing results and
focusing on things which actually creates value. It is about sharing
and creating knowledge within the channels of supply chain.
E–collaborative planning is created in collaboration
with suppliers, customers and channels partners through open sharing of
relevant consumer sales data and material availability. In this
scenario, one particular demand forecast is shared by all supply chain
participants. It is about data mining and bringing in correlation with
the dots and creating a rainbow. Information is shared at each and
every step and product and services is customized in accordance with
the changing needs of the final customer.
Web-based collaborative planning participates in
strengthening strategic relationships with key-customers. This allows
to exchange forecast and product status information on orders,
shipments and promotions and to manage products through their entire
life-cycle. The use of web-based collaborative planning results in
substantial reductions in lead-time and forecast availability;
improvement of inventory turns; increased customer satisfaction; more
efficient supply chain operations, reduction of manufacturing and
distribution cost.
E-collaborative planning allows corporations to gain a
much clearer picture of their overall buying tactics, initiate
aggregate purchasing across multiple channels. In addition, in case
there is any demand alteration, the channel can act fast and adjust to
the changing demand. It is about bringing in competitive advantage
through flow of information sharing.
E-collaborative planning helps in adding value at each step of the
supply chain. It helps about buying the accurate product or service
from the correct supplier, at the right price, at the exact time, and
with the defined and customized attributes. This results in reduction
of resources in terms of time, capital and elimination of excess
inventories. It is about creating transparency between manufacturers,
intermediates, suppliers, importers and retailers.
E-collaborative planning enables companies to efficiently implement
solutions that result in a reduction of “Bullwhip Effect”. In other
words, the collaboration enables the different participants of a supply
chain to collectively decide of a demand forecast, so that there are
not many surprises with the final result. It is all about the ability
to work together which finally determines success.
Robin Trehan can be reached at rtrehan@creditcapitalfunding.com