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In the article for IT in the Supply Chain magazine “Good Companies Plan – Great Companies Execute the Plan,” Tom Moore discusses the vitality of detailed plans and how ProvisionAi can help make executable plans.
In supply chain management, the difference between good and great companies lies in their ability to plan meticulously and, more importantly, execute those plans flawlessly. This dichotomy becomes especially evident in the intricate landscape of supply-chain planning and transportation management.
While numerous vendors engage in supply-chain planning and transportation management, a prevalent issue persists – the disconnection between these activities, resulting in significant costs.
A considerable challenge arises when planners use systems reactive to demand fluctuations but cannot formulate replenishment plans that fully align with the intricate needs of the supply chain. Existing tools often fail to grasp crucial constraints, such as warehouse capacities, shipment limitations, and the finite nature of labor and carrier capacities.
Consequently, plans that prove economically unviable or require extraordinary efforts for execution are devised. This unconstrained approach leads to battles for execution among warehouse and transportation managers, risking customer service failures and blame.
Executing an unconstrained plan can necessitate additional labor investments, potentially leading to overstaffing to accommodate peak periods. There are tangible costs, both in dollars and service quality, associated with hiring non-preferred carriers. For instance, a large consumer packaged goods (CPG) shipper had to shift from cost-effective intermodal to expensive truck shipments during volume peaks.
The remedy lies in creating a plan cognizant of various constraints and prioritizing deployment based on actual needs. This strategic plan should only peak when necessary, ensuring high service levels without unnecessary expenditures.
Crafting an executable plan demands comprehensive data and the ability to simultaneously manage interactions across the entire network. Adjusting data from existing replenishment systems to meet network capacity limitations is a complex task, particularly when considering full truckload increments in movements between sites.
Adding to this complexity is the need for a forward-looking approach, analyzing multiple weeks daily to manage demand spikes effectively.
ProvisionAi presents LevelLoad, a sophisticated software leveraging advanced linear programming and ultra-fast load-building through reinforcement learning, a form of artificial intelligence. This patented technology analyzes output from advanced planning systems and incorporates network constraints, smoothing shipments over the next 30-60 days.
LevelLoad integrates seamlessly with existing ERP and TMS solutions, automating freight tendering well in advance. When the ship day arrives, ProvisionAi’s AutoO2 ensures precise, high-priority product placement on replenishment orders, optimizing load building for weight and volume.
The benefits of crafting and executing a great plan are substantial. By eliminating the need for manual adjustments, securing preferred carriers, and reducing volatility, companies experience significant financial savings. Preferred carriers offer better rates for lanes with less day-to-day volatility, and warehouses are less strained, ensuring timely order fulfillment.
This is not a theoretical proposition; a large consumer products company has already attested to saving millions annually while enhancing customer service. Good companies plan, but great companies execute.
The transformative power of tools like LevelLoad lies in their ability to turn good plans into outstanding executions, redefining supply chain management success.