How Microsoft Dynamics 365 Supply Chain Management’s Master Planning Facilitates Production in the Food & Beverage Industry
In the rapidly evolving and highly complex food and beverage industry, where fluctuating demands, perishability of goods, and seasonal variations dictate daily operations, precise planning is extremely important. Managing production and supply chain in this industry requires a balance of raw materials, capacities, and timing to ensure that the right products are delivered to the right place at the right time. Master Planning is a critical component in the Microsoft Dynamics 365 Supply Chain Management toolkit (you can find a refresher on master planning here) that can help manage this delicate balance. Master Planning assesses the following:
- What raw materials and capacities are currently available? This includes a comprehensive understanding of existing inventories, production capabilities, workforce readiness, and machinery status. In an industry where raw materials are often perishable, this helps prevent wastage and ensures the timely utilization of resources.
- What raw materials and capacities are required to complete production? Master Planning explores what needs to be manufactured, purchased, transferred, or set aside as safety stock before production can be completed. In the food and beverage industry, this assessment must be particularly precise, taking into account factors such as expiration dates, seasonal availability, and regulatory compliance.
The Master Planning Process
The Master Planning process revolves around three key elements:
- Master Planning: Also known as the Net requirements plan, the master plan calculates net requirements based on current orders. It controls inventory replenishment on a daily basis, enabling efficient short-term operations.
- Forecast Planning: This process calculates gross requirements based on future projections or forecasts. It enables long-term planning of materials and capacity, critical in an industry characterized by seasonal demand variations.
- Intercompany Master Planning: This element calculates net requirements across legal entities, connecting demand and supply between companies for both short-term and long-term planned demand and supply.
Master scheduling plans typically span the short term, which can range from one week to six months. However, for most companies, this period is extended to include the longest cumulative lead time among the products to be received.
If you are interested in learning more about how Microsoft Dynamics 365 Supply Chain Management’s Master Planning facilitates production in the food & beverage Industry in Microsoft Dynamics 365 for Supply Chain Management, contact us here to find out how we can help you grow your business. You can also email us at firstname.lastname@example.org or call (312) 345-8817.
2020 Nucleus Research Report on ERP Technology