Not every business needs supply chain management tools and software. In some situations, it is simply not cost-effective or necessary. This is particularly true for an established business with a very simple supply chain and a steady, unchanging demand for the goods, products or services they provide.
For companies that are moving into new markets, that have steady growth or that have increasing demands for their goods, services or products, supply chain management and advanced planning and scheduling will be a critical part of current as well as future success and efficiency.
What Is APS?
The term advanced planning is typically also used with the term scheduling. It will typically be designated as APS. This is a system of software-based tools to allow a company or business to plan and analyze their supply chain from logistics through to manufacturing and distribution with a virtual model.
The program uses algorithms and data that are unique to a specific industry as well as for a company. This allows the APS software to run very detailed and very accurate models or representations of what different choices in the supply chain would create.
Multiple Scenarios
With the ability to virtually create supply chains through the advanced planning and scheduling software, a company can evaluate how one change in the system may impact other aspects of the supply chain.
This includes considering supply chain configurations and options for changes in demand, understanding the potential for demand, planning and scheduling production at different levels and also planning and managing logistics and distribution options.
The value in this software is difficult to quantify. It allows a company to run scenarios that can be evaluated and assessed not just for costs, but for the impact on all aspects of planning and scheduling moving forward.
