Adjusting the buying of materials and production schedules to the demand in a very dynamic market can be quite challenging. Of course, you make forecasts, but they depend more on your historic experience and knowledge than on the current market situation. Because you have no idea how much work is coming your way, you regularly run into problems in production. Overdue orders of (essential) parts disrupt the plant and cause longer delivery times. In some cases, you can’t deliver for weeks or even months and there are considerable delays in projects, which makes your customers start to grumble. Expenses, dissatisfaction, claims for damages, and prospects who change their minds about doing business with you. If you maintain large stocks to avoid delivery problems, you risk incurring a loss. If you phase components in and out, you will often be left with large volumes of parts you can’t sell – yet more costs.
If you draw up your quotes using Sofon, you will be able to see how many outstanding quotes you have and their chances of becoming an order whenever you want. Using that information, you can continuously make forecasts about the materials and your production capacity. Then, you can adjust the buying of product parts to match the forecasts and anticipate how many machines and man hours you need. With that in mind, you can plan for new projects carefully, as well. This option is even more attractive if you work with critical, expensive components involving long delivery times. You can predict quite accurately how many of those components you will need, and in which period.
Sofon also helps you phase parts in and out, because you can compare the components in “promising quotes” with the amount you still have in stock, which enables you to plan when to transfer to a new part. As a result, you can use up your stock quite precisely. That transfer will not involve much work. In Sofon, you simply replace the inference of the old part with the inference of the new part. If you use Sofon as your source, your ERP system will automatically order the new part, and there will be a rack ready for the part in your warehouse….