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Optimised production planning tool

Country of Origin: Spain
Reference Number: TOES20170927002
Publication Date: 27 September 2017


A Spanish Information Technology (IT) company offers a cutting-edge optimization tool for sales forecasting, production planning and procurement. The tool integrates a fast and powerful statistical analysis of the sales record of each company's product with business information and the state of the supply chain in order to provide an optimized production and procurement plan. The company is looking for partners to establish license agreement or services agreement.


Demand forecasting is a key process in managing the supply chain and it drives all the activities related of the planning process. When the demand forecast is not accurate, decisions based on it can lead to operational errors with negative consequences over the whole production process as surplus of capacity and inventory or stock-outs, production downtimes, etc.; causing a negative impact on customer service and costs. On the contrary, when the forecast is reliable, it allows the company to be prepared for changes in the market and to improve their competitiveness and the logistic capabilities may become an important competitive advantage.

A Spanish IT company offers a new cutting edge optimization tool for sales forecasting, production planning and procurement.

The tool is integrated with the client’s management system in order to calculate a tight demand forecast based on the sale record and qualitative information of the market. Without statistical knowledge, the user can obtain the outcome of powerful statistical analysis in real time and in a simple and visual way.

Based on expected demand and information from the supply chain, such as the list of products, the bill of materials, inventory, active purchase and production orders, the system calculates the optimized procurement and production plan taking into account production, purchase and storage costs.
It shows the results in a simple way to be easy to use, facilitating the decision-making and planning process as well as the operational management.
It is an optimal solution for answering to the following questions: Which products should I produce or buy? Which quantity? When should I produce or buy them?, and also obtaining many advantages:
- Calculation of sales forecasts, consumption and dynamic safety stock based on advanced statistical methods.
- Control and reduction of stock levels and stock outs in warehouses.
- Management of auxiliary products.
- Adaptable to different productive and commercial sectors.
- Connectivity and adaptability to ERP systems and any data source.

To sum up, its main features are:
- Make sale predictions / forecasts by means of powerful statistical calculations
- Management of new products
- Management of business information (trade actions, competition, etc…
- Allows parameterization by product
- Analyzes and automatically categorizes the portfolio of products
- Dynamic calculation of safety stock based on historic data record and forecast
- Optimized production and procurement planning
- Evaluation of batches according to procurement, production and stocking costs
- Performs calculations for thousands of items in minutes
- Integrates and complements the functionality of your ERP
- Users can have profiles with different views and rights

The optimization system can be used in any manufacturing industry or sector (food, plastic, automotive…).

The company is mainly looking for partners with sales forecasting and production planning needs. Different types of co-operation are possible: license agreement or services agreement. The company will offer his knowledge and technical advice during the deployment of the product in final client. Moreover, the company will assist and collaborate in the implementation of the product according to client’s needs.

Advantages and Innovations

This optimized production planning tool generates a sales forecast report by means of an exhaustive statistical analysis that, automatically and without user intervention, determines the best forecasting method for each item by detecting patterns of behavior, seasonality, cycles or trends. Based on the demand forecast, the system is able to generate an optimized production and procurement plan through the application of mathematical models that take into account factors such as lead times, stock availability, purchase and  production orders and production in progress, the minimum lot size, deals, costs associated with purchasing, production and storage, etc. As a result, the user receive a detailed report with the products to buy and produce, when and in what quantity, in order to meet the expected demand and maintain high levels of reliability. 
The main advantages of the optimization tool described are:
- User friendly and customizable to different sectors;
- Adjustment of production and purchase plans to demand;
- Reduced stock-outs;
- Reduced stock levels;
- Lower inventory costs and reduced risk of obsolescence;
- Easy to use: Statistical knowledge is not required;
- Lower supply chain control and management costs;
- Fast and flexible: Calculate forecasts and plans for thousands of products in minutes;
- Support system to decision making…

Stage Of Development

Already on the market

Requested partner

Type of partner sought: industry / company.
Activity of the partner: manufacturing, sales and/or distribution.
Role of the partner: final client, with sales forecasting and production planning needs.

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