Manufacturing supply chains in the Automotive, Heavy Equipment and On-Highway industries are complex, multi-tiered, and unpredictable. In this volatile market, original equipment manufacturers (OEMs) and Tier 2 and 3 providers of manufactured assemblies need to establish some level of stability. It’s the only way to manage high volumes of parts with reduced risk of excess or shortage.
Component manufacturers like KMC can provide this stability with a sales and operations planning business management process. This disciplined approach requires forecasting, analysis, and communication with OEM Partners to align all aspects of an organization. In return, OEMs can breathe a little easier with the benefits of cost control, shorter lead times, and manageable inventory. All without sacrificing quality.
The goal of sales and operations planning is to effectively balance supply and demand. The more KMC can gain visibility on how each of our customer’s production requirements fit in with our schedule and capacity, the more leverage we have with vendors and suppliers. From there, we work collaboratively to navigate the ebb and flow of order volume. Read more.