S&OP - Demand Capacity Management

The optimal coordination of requirements and capacities is a central success factor for manufacturing companies, especially when the scope for action becomes narrower as competition increases. S&OP - Demand Capacity Management (DCM) software continuously compares sales and production requirements with plant and supplier capacities. The process involves the corporate divisions of sales, plants with production and production planning, logistics, and purchasing. DCM ensures stable production programs, avoids capacity bottlenecks, allows for smooth production logistics, and ensures a high degree of supply availability in terms of markets and production. As a result, companies can organize their own production and supplier management in the best possible way and work economically. It also results in an inventory reduction and reduction of lead time production-POS and production outages due to part-shortages.