Material Planning

Material or Purchasing Planning is one of the most critical parts of the supply chain. Arkhon provides a material planning environment which considers the demand requirements, supply parameters and financial expectations.

Key Benefits

  • Single or Multi-Level Material Requirement Plans
  • Purchasing Plans considering Supply Parameters & Limits
  • Easy Critical and Overstock Material Analyzes
  • Provides supportive reports about financials and inventory

Key Features

  • Purchasing Proposal Calculations
  • Multi Level MRP
  • Multi-Plant Material Planning
  • Critical Material & Overstock Analyzes
  • Inventory & Payment Reports

Functional Highlights

Material or Purchasing Planning's importance is related with its ability to cover the micro / macro variances. Due to economic environment, the prices and supply amounts are varieting. The leadtimes are long and there are a lot of unexpected issues (like logistics problems) until the receival of the quality goods. The supply chain professional should keep low level of stocks in order to not harm the financial structure of the company, but on the other side should keep enough amount to meet the production or customer needs.

Arkhon starts with the calculation of the material requirement plan. The bill of material (BOM) can consist of just one layer or many, which is common for most of the industries. On the latter, Arkhon can easily analyze the multi-level BOM and calculate the requirement amounts for each level. Also, it considers the semi-finished goods which may have some stock and supply policies. Outsourced goods with their company owned material purchase can be also part of this process; Arkhon can manage most of the complex cases.

After the requirement calculation, Arkhon checks the stocks, opens orders and supplies parameters and proposes some quantities per each material on a given horizon. Also, it warns the user about which of them should be converted to the official orders due to leadtime parameters. This plan can be prepared either per material or a group which is supplied by the same supplier in a mixed container.

If there is crisis on the material availability, it can be easily foreseen on the plan. Alternative materials can be analyzed or with multi-plant option, other locations can be checked for availability. On the other hand, the overstock items can be listed and options for consumptions can be analyzed.

Arkhon can also provide some reports about the plan, which is absolutely vital for the financials. The first one is the inventory report which sums up the value of the goods in three section; requirement, supply and stock. This report shows how the inventory moves for a given horizon per material group, per project and supplier. On another report, user can provide to the accounting team payment details on each period. Also, the material plan can be converted to a warehouse loading plan to make the logistics team aware of how the planning.

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