---
title: Overcoming Manufacturing SC Challenges with Digital Planning
description: Supply Chain and Digital Planning working together
image: https://blog.prophetic-technology.com/hubfs/timothy-muza-6VjPmyMj5KM-unsplash.jpg
---

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# [Overcoming Manufacturing SC Challenges with Digital Planning](https://blog.prophetic-technology.com/overcoming-manufacturing-sc-challenges-with-digital-planning)

The Supply Chain (SC) has been growing up to such an extent, that it is getting much more complicate...

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Posted by [Dave Food](https://blog.prophetic-technology.com/author/dave-food) on Mar 26, 2020 5:44:19 PM

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The Supply Chain (**SC**) has been growing up to such an extent, that it is *getting much more complicated* each day; to the same degree, *manufacturing* challenge and *competition* are escalating fast in no time.

It seems Manufacturing is *synonymous of ever-changing edge-technology*. With the launch of **Digital Supply Chain**, the *delivering* of more *efficient* and *quality products*, and customer satisfaction are what leads the market nowadays. However, the *achievement* of this digital journey *insertion* is taking our companies sometimes.

In a recent KPMG research, plenty of **CEOs** on Manufacturing mentioned that digital transformation often *appears* to be *moving too slow* and becoming *hard* to undertake; consequently, there is *still a huge gap* to close among Digital **SC** *strategies* and businesses *targets*. The issue is to reach your *digital transformation before* the competition.

 

**Most common-related Manufacturing challenges**

 

· **The need for rapidly responding** *to make right-decisions concerning on-demand variability* and *intermittent*-demand. When changes on orders happened more quickly than the capacity of the company to meet those changes, it resulted on wrong Stock-keeping Unit (**SKU)** combination and locations, recurrent internal-inventory allocations, and rushes resulting on high-freight costs.

· **Deficient customer-service standards** drive to inventory outs, uncompleted orders, and lengthy-level of order fulfilment, conducting to loss of sales or missing valuable opportunities.

· **On the other hand, surplus or obsolescent-inventory:** securing stock to cover service level requirements, fosters too much working-capital expenditure, causing extra costs and internal reassignments.

The automation of your Supply Chain Planning (**SCP**) is an approach that brings your digital *strategy to the forefront* to lessen Manufacturing **SC** challenges likely to compromise your company feasibility. By digitising **SCP**, you can *accelerate* the reaction to make *smart-quick resolutions*, *cut down costs*, enhance *cost-effectiveness,* and *grow market* stakes.

“*Long-tail”* of products in a company means, it has many **SKUs** with *intermittent demand* issues. This *variability* makes the **SKUs** *challenging* to forecast**,** causing safety-stock to rise to accomplish service levels. To leverage *service* and *inventory*, we *can replace* our manual-reactive planning process with an *automated Machine Learning-driven process* to more *precisely predict* demand and *improve* inventory levels.

When you complete the initial stage of *implementation*, you will see *essential benefits* to Manufacturing and distribution **KPIs,** such as a *rapid* and *on-hand* inventory, *diminishing* stockouts while *improving* service levels. **ML** automation makes possible a high per cent of recuperation in *buyer’s productivity*.

**Supply Chain and Digital Planning advantages when working together**

 

- It enables us to *run our operations* more efficiently and *cost-effectively*.
- Better *part-level forecast* accuracy to only transferring the inventory *we require* and *when we need* to fulfil our customers’ demands.
- We can *provide* our suppliers with a more *accurate demand indicator*.
- It allows us to draw and keep hold of *high-competence talent*.
- Planners can operate more *rapidly* and *truthfully* when *detecting developing* opportunities.

 

**Summing up:** take your company on a *wide-digital transformation journey* to build a powerful-efficient business *that betters work for each* of your supplier partners, manufacturing customers, supplier, and your in-house business operations, for both your Manufacturing and distribution sections, and departments all over your enterprise.

**Dave Food**

[Prophetic Technology](https://www.prophetic-technology.com/)

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