How It Works

LeadTime Technology™ (LTT) tools simultaneously optimize operations, resources and inventory to most profitably provide superior customer service.

LTT liberates planners from having to think about products as make-to-order (MTO) or make-to-inventory (MTI) because LTT handles the entire spectrum from MTO to MTI automatically in a single model. Each day LTT extracts detailed supply chain data (demand, supply, costs, capacity) from your existing transaction (ERP) system and develops an Inventory and Master production plan based on predictive models that capture both the complexity and the dynamic nature of supply chain systems. This includes dynamically changing safety stocks, economic order quantities and other variables. By updating every day, LTT is able to sense subtle changes and adapt optimally; making it an ideal solution for exploiting real-time POS or VMI data.

LTT re-forecasts demand daily for each SKU at each location to dynamically track demand trends, spikes, troughs, and seasonality. LTT’s highly accurate non-linear forecast algorithms are self-tuning and can dramatically reduce forecast error. Because the forecast is optimized over the short period of time corresponding to the supply lead time, it offers unprecedented accuracy for the production planning function. LTT also predicts the arrival of surprise orders that will need to ship with short lead-times, thus preventing lost sales and reducing the need to expedite orders.

LTT automatically models and predicts supply chain variability in areas such as demand, supply, lead-times, yield, peak rate, asset utility, capacity, and seasonality. Since supply chain systems are inherently non-linear, LTT uses the actual probability distributions to correctly calculate safety stock requirements for each individual SKU. Because important real-world variability is included, LTT can deliver the desired service levels and significantly reduce outside chaos from disrupting internal operations. Expediting and firefighting are greatly reduced as LTT anticipates and adjusts plans for variability.

LTT re-optimizes order quantities and inventory levels daily for every SKU at each location to maximize profit. Because inventory plans are dynamically recalculated each day using the most recent data, LTT is able to sense changes in the supply chain (seasonality, demand trends, lead-times, supply, variability, costs) and automatically adapt individual SKU inventory plans for maximum profitability and service. Safety Stocks and Cycle Stocks are simultaneously optimized using LTT’s patented technology, enabling LTT to deliver high service levels with greatly reduced inventory requirements.

LTT automatically generates prioritized lists of make, move, and buy recommendations for planners and schedulers to utilize in their daily decision processes to deliver the desired service levels at maximum profitability. As a result, planners have the best information available with the lead-time needed to effectively plan. LTT automates off-line spreadsheet planning activities and other time consuming planning tasks and frees Planners, Schedulers, and Buyers to work on exceptions.