12. Conclusions and Outlook

Abstract

The preceding chapters have shown the different steps of introducing an APS in industry, starting with an analysis of a given supply chain, its redesign and subsequently modelling the supply chain from long-term to short-term decision levels. The integration of all planning tasks relating to the order fulfilment process will result in a new era of enterprise wide and supply chain wide planning. Thereby an APS yields improvements not only on the three crucial factors of competitiveness, namely costs, quality and time, but it will also allow to • make processes more transparent, • improve flexibility and • reveal system constraints. Widely available information from all over the supply chain results in a trans­ parent order fulfilment process. It enables companies and supply chains to provide customers with accurate information about the order status and pro­ vides alerts in case an unexpected event causes a delayed delivery of an order. However, before this happens a decision-maker can find and check alternative ways to fulfil the customer order, either by a shipment from another ware­ house, from another production site or by offering parts of the next higher grade. Additionally, transparent processes will reduce waste along the supply chain, because waste, e. g. resulting from excessive inventories or resources with low utilization rates, will be recognized quickly and measures for its improvement may be introduced. More importantly, due to its optimization capabilities, an APS will keep waste to a minimum right from the beginning. With markets and customer expectations changing quickly, supply chains not only have to respond but to anticipate new trends. In some cases this may be achieved by integrating key customers in the supply chain. On the other hand flexibility comes into play which can be discussed along two di­ mensions. One is to be able to cope with changes in actual demands given the current inventory position, equipment and personnel. The second aspect of flexibility is a supply chain's ability to adapt to changing markets over time (sometimes called agility, see Pfohl and Mayer (1999)). An APS supports both dimensions. As an example, the ATP module can show ways to use existing inventories in the most effective manner. Also Production Planning and Scheduling allows to reoptimize a new mix of orders quickly. Flexibility