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 ORion-PI® – supply chain network optimisationORion-PI® is a powerful and proven supply chain network optimisation tool that:
Using ORion-PI, we can conduct fact-based analysis to support supply chain decision-making enabling our clients to act with confidence and deliver superior cost, capital, service and asset efficiency improvements. This in turn results in superior Return on Capital Employed (ROCE) performance. Achieving real resultsWithin most companies there is a significant yet often unexploited potential for increased supply chain efficiency. ORion-PI has a multitude of capabilities to deliver supply chain optimisation. ORion-PI has revolutionary optimisation and modelling technology based on state of the art combinatorial algorithms. These form the basis of a broad spectrum of fully integrated planning and optimisation capabilities which, like building blocks, can be deployed together to form customised solutions.
ORion-PI® Value Network Optimisation is our solution for the integrated approach to strategic network scenarios; no matter if seen from the perspective of a logistics provider, of a supply chain manager or a financial controller. To efficiently design your network we offer you a holistic End-to-End optimisation approach which covers every relation within the supply chain, from customer relationships, production plants and distribution centers to suppliers, manufacturers and distributors.
ORion-PI provides realistic network mapping as it considers all relevant constraints and restrictions in its calculation, e.g. delivery times service requirements inventory, transport and production capacities cost factors for handling, transports or fixed entries road networks and freight rates non-linear cost functions, and many more. The new technology that ORion-PI® rests on allows such an accurate representation of the network, even if it consists of hundreds of locations and thousand of customers and products. This is driven by ORion-PI's unique Cost Scaling Algorithm technology. As such, data aggregation is not required.
Following are descriptions of the capabilities within the ORion-PI product suite. Core FunctionalityStrategic Supply Chain Optimisation ORion-PI enables the efficient evaluation and optimisation of strategic planning scenarios. Simulations of ‘what-if’ scenarios give decision support in strategic issues and thus facilitate the optimal design of production and distribution networks, the evaluation of alternative locations as well as the optimal allocation of products and inventories. ORion-PI maps the supply chain from end to end and so provides a realistic and holistic representation. Such an integrated planning approach provides both transparency and process flexibility. End-to-end supply chain optimisation thus provides a secure basis for strategic decisions that ultimately lead to significant improvements in Key Performance Indicators. Moreover, an innovative technological approach based on Cost Scaling Algorithms enables the detailed optimisation of highly complex supply chain networks. ORion-PI enables the design of a cost-optimal supply chain as well as the generation of different business scenarios. Manufacturing with Constraints ORion-PI generates optimal production, transport and distribution plans. In contrast to software solutions that are exclusively based on Linear Programming, ORion-PI takes into account all critical constraints and restrictions. Network Forecasting ORion-PI’s forecasting ability was specially developed to recognize market trends and developments. It brings together all known factors such as seasonality patterns and sales data with highly developed mathematical methods to arrive at high quality forecasts. The statistical methods used include traditional algorithms and new, sophisticated techniques such as the Box-Jenkins method. Available to Promise (ATP) / Capable to Promise (CTP) The ATP/CTP capabilities enable rapid querying of availability and delivery dates for customer orders. Sales personnel call center agents and Internet based customers are able to reliably check for themselves if goods can be obtained by a desired date. Workforce Management This functionality supports companies from the production, distribution and logistics sector in the operative planning of deployment as well as the long-term calculation of staff capacities. ORion-PI first calculates current or future workloads and the respectively needed personnel. It then compares this data with the actual, available manpower, generating feasible plans for all processes, working areas or zones. To avoid possible bottlenecks it suggests rescheduling options with respect to available and qualified workers. Efficient Optimisation & Modelling ToolsModel Manager Model Manager makes it possible to generate, manage and optimise business scenarios quickly. Different scenarios are stored as models, individual scenario elements can be combined across different models and end valuations of quantitatively elaborate decision alternatives can be easily summarised and compared. Resource Optimisation Wizard This visualisation and planning tool makes it possible for supply chain managers to analyse, edit and compare planning results. Within a Gantt chart display, process chains, networks, and production phases can be shifted, fixed in place or rearranged. In the process, set-up, cleaning and production times are dynamically recalculated and dependencies and resource utilisation are displayed visually. Material Flow Animator Material Flow Animator offers graphical insight into dynamic processes. Using animation, it graphically displays what is happening in logistics and production based on individually specifiable parameters. The simulation can be queried and analysed at any desired speed. Data Browser The Data Browser provides a quick and easy way to view and evaluate planning results. Providing ‘at a glance’ comparisons of alternative simulation and optimisation scenarios - at any level of detail required. Any custom data analysis is possible as all data can be directly exported to Microsoft Excel. Network Editor The Network Editor visualises geographical information such as maps and clearly models process flows or BOMs in a network. In addition, further information can be displayed transparently, for example, process flows. The Network Editor provides integrated functionalities for geocoding and route calculation via web screens. Web Screens Several applications in ORion-PI provide intuitive and easy to use additional web screens for the use with all common Internet browsers. Specific functionality for the process industryProduction in the process industry is characterised by a multitude of special restrictions, manufacturing steps and product variants. Using capabilities that were specially developed for process industry companies, ORion-PI provides support for successfully meeting these challenges. ATP with Batch Specifications ATP with Batch Specifications makes it possible to not only check the summary availability of materials for customer orders, but also to make a feasible assignment of existing inventory and future production based on customer-specific requirements for batch quality or shelf-life. Assignments are dynamic, meaning that all information is considered all the time, minimising the assignment of over-qualified batches and thereby maximising profit. Recipe Optimisation Recipe Optimisation makes it easier to use alternative raw materials or capacities. The most cost efficient materials and the quantities needed for production are calculated taking into account the current sales plan, desired product quality, availability of raw materials and existing capacities. As a result, inventories are optimally handled and raw material costs are reduced. Production Lot Size Optimisation These tools enable the dynamic optimization of lot sizes and supply chain inventories. Diverse technical constraints such as minimum lot sizes, prohibited and mandatory sequences, and whole-unit multiples are taken into account, even across global production and complete logistics networks. Specific functionality for distribution and logisticsORion-PI can assist to increase productivity and cash in unexploited areas of the distribution network, from order assembly to shipping management. Pick Process Optimisation This capability determines the optimal storage location and picking area for every stock keeping unit while minimising costs and times for the picking, relocation and replenishment of inventory. All item characteristics and storage locations are taken into account and workload is evenly distributed among all picking areas, smoothing out bottlenecks. Warehouse Replenishment Optimisation / Dynamic Slotting Replenishment Optimisation calculates the most advantageous storage locations in the replenishment area. This is based on site locations, the frequency of replenishment, distances between sites, distances between individual bins and transport costs. As a result, replenishment distances and costs are minimised. Consignment Optimisation Consignment Optimisation provides support for reducing pick paths in order-based or item-based picking. For example through minimising feeder trips for order assembly or through savings in shipping volume. Material Flow Optimisation Material Flow Optimisation helps planners by calculating over-utilised or under-utilised areas in the distribution center. Problem zones are graphically displayed together with possible solutions for avoiding interruptions or bottlenecks in the flow of materials. Capacity Planning This capability helps you to ascertain the capacity requirements associated with all activities in the distribution center and to match these to existing or planned capacities. The calculation is performed on the basis of MTM standard times and determines the number of persons needed and working hours for the coming workdays per area, zone or personnel group. Route Optimisation Route Optimisation helps in the daily planning of required transport resources and transport routes. Restrictions such as material perish-ability or requirements for whole units are automatically taken into account by combining orders into logical units. In addition, transport costs can be reduced through the implementation of user-defined minimum delivery loads. Pick Trend Pick Trend is a statistical analysis tool that helps you reliably forecast future order volumes. Trends are reliably modelled, enabling significant improvements in delivery reliability as well as better planning through the timely recognition and smoothening of demand fluctuations. In this way, the distribution layout and personnel resources can be managed on a proactive basis. Purchasing Order Optimisation Purchasing Order Optimisation ensures that at any given time the optimal inventory will be available to meet demand - and at minimum cost. To do this, inventory data from the integrated forecast capability is supplemented with historical sales data, trends, and seasonal peculiarities in order to determine which items are to be ordered, from which suppliers, in which quantities and on which dates. Click the PDF links below to download ORion-PI brochures:
GRA's Alan Denton authored an article on supply chain network optimisation in the Jan/Feb issue of MHD Magazine. Click 'Supply Chain Network Optimisation'to view in your browser, or download the print magazine version below.
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  Super Cheap AutoGAINS manages more than three million stock keeping units by location through five distribution centres to more than 250 stores -
and has reduced inventory by more than 12% in one year whilst improving service levels.
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