Planning System Selection
You need a best-in-class system that achieves your service level goals at the lowest cost. When selecting such a system, simulation helps your objectively evaluate candidate systems to ensure that the selected system works for you.Planning System Implementation
When implementing a planning system, it is necessary to tweak it to closely resemble your reality. Simulation is essential for running scenarios so you can calibrate targets and tune your planning system to ensure success.Budget Cut
While service is important, inventory is often under financial scrutiny and planners are often tasked with reducing inventory levels. Inventory reduction has a significant and long-lasting impact on service. More importantly, given the current inventory levels, you may not even be able to achieve the desired reduction within a planned timeframe. A realistic evaluation of the impact of inventory reduction is only possible with simulation. At PTC's LiveWorx 2017
conference, Philips Healthcare presented their use of SimAcumen Insight simulations to negotiate budget reductions.Differentiated Service By Demand Priority
We often come across different service goals for different demand priorities, to be served from a single stockpile. While theoretical planning models do not support evaluation of service levels by demand priority, such an evaluation can be obtained with simulation! Thus, with the help of simulation, service planners can fine tune planning system to achieve the differentiated service level goals.
IoT and Predictive Analytics
The deluge of sensor data in the IoT age makes it possible for predicitive analytics to prognosticate equipment failures before they occur, which can result in vastly reduced equipment downtime. Service parts planners can leverage these impending failure signals to improve service levels while simultaneously reducing inventory levels. How can planners make this idea work in the face of mostly accurate, but sometimes inaccurate failure signals and high lead times? Simulation is the answer! The use of service supply chain simulation in leveraging predictive analytics for supply planning was presented at PTC's LiveWorx 2019
Organizations often cover up for their supplier’s lack of performance by stocking more. Instead, there should be an incentive/penalty structure that works for both parties. Simulation provides a realistic quantitative picture of the impact of supplier performance on service levels, so you can negotiate with your supplier!Structuring and Managing PBL Contracts
In a Performance-based Logistics (PBL) contract, your customer is buying a certain level of service, with a incentive and penalty structure tied to performance. How can you evaluate the financial impact of the stocking policy in place against the contract terms? Simulation helps you with such an evaluation, and in deciding how to price such contracts.Offering an SLA
The converse of the Budget Cut use case is the creation of a new Service Level Agreement (SLA). Here a planner needs to analyze the impact of changing stocking policy to determine the point in time at which the new SLA can be appropriately served. Only simulation can provide a realistic answer to this question!