Demand Planning
Backorder occurs when there is insufficient inventory to cover a sales order item’s demand. It usually involves apologizing to the customer and providing a future date when the product will be available to ship.
Microtech Cloud Supply Chain provides you with backorder, demand planning, and allocation management to to identify and fix the root cause of the shortage, for the main purpose of satisfying upset customers, and getting things back on track.
Microtech Cloud Supply Chain Demand Planning Management will help you identify answers to:
• Which products are affected by shortage
• Which customers are affected by shortage
• How to fix the problem and avoid shortages
Allocation is the point where supply meets demand and is one of the most important pieces of the supply chain.
Soft Allocation is when supply is flexible, depending on changes to demand. It’s possible to shift quantities and orders as needed. Deliveries are still in the early stage of planning.
Hard Allocation is when supply is committed to the demand, with no changes.
Delivery date is very soon.
Microtech Supply Chain enables you to set up order processing to ensure that inventory is reserved for timely fulfillment of priority customer orders rather than basic first-come, first-served fulfillment.
Backordered items can be shipped based on the commitment priority you designate. Rather than fulfilling orders based on a transaction date or expected ship date sequence, employees who manage sales orders in your pipeline can use this prioritization option to reallocate the quantity committed to orders based on designated priority.
