Supply and Demand Balancing, Inventory Optimization and Enterprise Simulation for a Robust CPG Supply Chain
Benchmarking and simulation of CPG material flows from suppliers, through DCs and then out to the customer are excellent methods of validating CPG value chain initiatives prior to deployment.
LLamasoft Supply Chain Guru includes features designed specifically for the CPG value chain. For instance, enterprise simulation is used for commodity price analysis and to test the robustness of the supply chain, given highly variable raw material costs. Inventory optimization helps analysts understand where inventory buffers should be placed to meet service level goals while minimizing inventory holding costs.
Supply and demand balancing is used to identify the lowest cost solution to satisfy seasonal demand, while satisfying production and warehousing capacity constraints. It can also be used to understand supply chain constraints on future projected demand.