ToolsGroup’s SO99+ supply chain planning (SCP) solution is the first of its kind to incorporate probabilistic modeling across a range of supply chain planning functions, from demand forecasting through to inventory and replenishment planning. It has a lower cost of ownership than traditional planning approaches and also addresses the growing problem of lumpy demand.

Until now, all supply chain planning suites have used deterministic APS (advanced planning and scheduling) logic. But actual supply chains are experiencing increased random behavior due to shorter product life cycles, product promotions, and longer supply lines. This creates a disconnect between deterministic models and real life supply chain behavior.

ToolsGroup offers a new approach where the probabilistic nature of the supply chain is integrally modeled in all of the SCP functions. For the first time, the probabilistic modeling cut across the end-to-end supply chain and its planning functions.

There are several benefits to this approach. The first is that users can now forgo the added cost of a separate inventory optimisation module. For the first time, they can achieve the significant inventory optimisation benefits (reduced inventory and improved customer service levels) directly from a targeted, compact SCP solution.

A second benefit is that unlike large heavy suites with wide footprints, SO99+ provides a tightly integrated probabilistic backbone. Rather than constantly adjusting and tweaking to accommodate the randomness of the supply chain, users can now allow the solution to directly address stochastic supply chain behavior. The resulting solution is easier and less expensive to use.

The third benefit with this approach appealing is its ability to handle intermittent demand patterns, known as “lumpy demand”. Demand buckets are getting smaller as product proliferation creates more alternatives and shorter replenishment cycles create more time slices. That creates more demand variability that can kill your supply chain effectiveness.

Unlike traditional supply chain planning solutions, SO99+ conquers the lumpy demand and demand variability in your supply chain, making it easier to use, and lowering the cost of ownership.