Many industries are currently suffering from material shortages. For example, the current global crisis in automotive semiconductor supply has made many headlines and disrupted or slowed automotive production for OEMs worldwide.
A perfect storm has been brewing: long-term trends around a rapid increase in demand from the automotive sector, competing with other fast-growing industries for semiconductor manufacturing capacity, and a mismatch in supply chain structures met with dramatic fluctuations in demand caused by the pandemic, topped by factory closures due to power outages in Texas, fires in Japan and water shortages in Taiwan.
It’s clear that the automotive industry needs to fundamentally overhaul its semiconductor procurement and allocation processes – and fast. Traditional ERP systems are not suitable for this due to their inappropriate data structures and lack of functionality.
Based on its advanced data model, visualizations and deployment functions, LOOMEO Allocation Management helps you to optimally distribute short material across your supply network, to rebalance the supply and demand equation quickly, and to fulfill your customer needs best possible according to your business goals.
This is LOOMEO Allocation management
The optimal allocation of short material across a multi-echelon supply network requires the application of advanced software functions. The underlying algorithms have to ensure that scarce material is optimally distributed to the customer demands.
- Automatic deployment across supply network based on optimization rules on various optimization rules e.g. fair share, prioritization or customer risk
- Collaborative workspace for allocation management for various parties e.g. procurement, logistics, sales, supply chain management,…
- Allocation cockpit providing complete visibility in the allocation of short quantities across the entire supply network
Visualization of Impacts
With the help of the “explore function”, the affected elements can be traced in the graph in the event of a failure of a supply chain element. Thus, the responsible persons can be informed quickly and countermeasures can be initiated.
- Easy navigation through the supply chain with the help of the explore function
- Quick identification of effects in the event of a failure
- Systematic reduction of supply chain complexity through effective analysis functions
Business at Risk
To track and quantitatively assess the business impact of disruptions in the supply chain, LOOMEO has dynamic tables. All elements of the supply chain affected by a failure are dynamically displayed and an estimate of the extent of the damage can be made based on defined key figures such as sales or EBIT on the end product or customer level.
- Quantitative estimation of the business at risk
- Quantitative simulations for risk assessments of failures or disruptions
- Rapid information on the affected elements
Affected Material Flow
The display of the material flow in the “Flow Widget” enables the quick recognition of the effects of the failure of a supply chain element. Starting from an affected element, the widget shows the associated material flows upstream and downstream across the entire supply chain.
- Detailed visualization of selected value streams and material flows
- Visualization of all dependencies upstream and downstream in the supply chain
- Efficient creation of meaningful reports