APS logistics: the essential planning tool for the supply chain

Par
 
Justine Demarque
 
le
 
12/10/2022

How can you rely on technology to optimize your supply chain? It is exactly to answer this question that APS software was created. Being able to plan, predict and adapt quickly to changes is at the heart of the company's concerns. Indeed, the quality of this process constitutes a considerable competitive advantage. This is the key to ensuring customer satisfaction. What are the areas of intervention of a logistics APS? Why use this software? Or what functionalities do they offer? Let's learn about this tool in this article.

What is APS software?

One Advanced Planning and Scheduling (APS) is a logistics management software that offers functionalities for planning, synchronizing and optimizing a company's flows. Integrated into an ERP, this tool aims to simulate the supply chain in order to optimize it. To do this, it starts from forecasting demand to delivering orders to end customers, through production and supply planning. This computer program is designed to facilitate business decision-making and ensure that it is in accordance with customer demand. Thanks to this tool, logistics managers are able to take measures adapted to each context.

What are the areas of intervention of a logistics APS?

A real planning tool, APS synchronizes and optimizes the supply chain according to a set of constraints. These include the performance of production machines, storage capacity, supply time, customer delivery dates, product seasonality, etc. Poor optimization of these factors may in fact have a negative impact on company performance. The APS software also comes into play in the commercial process by intervening in sales forecasting and customer delivery. It is a real commercial asset by offering a better quality of service, and therefore, better customer satisfaction.In short, this Advanced Planning System acts on all levels of business planning:

    • Strategic: for a global optimization of the supply chain and stock.
    • Tactic: involving sales forecasting, workforce planning, demand management, production, distribution.
    • Operational: which covers scheduling management, resource control, inter-site transfer management.

What are the advantages of a logistics APS?

Although deploying APS software is synonymous with investment, using this logistical tool is beneficial for business performance. Indeed, a APS logistics provides significant advantages. On the one hand, by optimizing the supply chain, it makes it possible to reduce costs drastically. By using this tool, the logistics manager has the possibility to:

    • to improve inventory management
    • to better anticipate seasonal variations
    • to optimize the use of industrial capacities (workforce, machine)
    • to rationalize distribution costs

This has the consequence of reducing variable costs.On the other hand, the advanced planning software significantly improves the quality of service provided to customers. By making accurate and reliable forecasts, this software makes it possible to guarantee the permanent availability of products and to avoid delivery delays. The company can thus respond to consumer demand as soon as possible. Customers will be happy with it and the company will enjoy a very good reputation in the market.

The functionalities of an APS software

A logistics APS consists essentially of five functionalities that integrate numerous planning tools to optimize the entire chain.

Demand planning

Demand planning is the lifeblood of the supply chain. This activity consists of estimating the company's sales in order to organize production, storage and distribution processes. It thus makes it possible to maintain a reasonable level of stock, making it possible to meet customer request.Containing a statistical analysis module, the APS software helps the logistics manager to determine the number of products to be manufactured, the storage space required, the number of employees and the equipment to be deployed.Integrated with the ERP, it is accessible to all company departments. The latter contribute to the realization of the estimates by sharing information between them (number of orders, promotions, real deadline, etc.).

Production planning

Based on demand and the analysis of constraints, logistics APS makes it possible to create a solid production plan. This process is a must for maximizing business productivity. The objective of production planning is to allocate raw materials, human resources, and the necessary equipment at the right time and in the right place. The idea is to balance production needs with available resources to ensure that orders are processed optimally, without interruptions or delays.

Distribution planning

This feature complements production planning in order to minimize costs and maximize customer satisfaction. To do this, APS logistics ensures that stocks in warehouses are replenished in time. In addition, this APS tool allows you to plan human and logistical resources, optimize stocks and control the delivery service. It also allows you to act proactively in the event of changes. Examples: adding products, changing storage policies or transport strategies, etc.

Transport planning

Transportation planning involves determining the means of transport and the best routes to deliver items to customers. It aims to optimize travel in order to reduce delivery costs and to offer a quality service by delivering orders as soon as possible. Planning transport is a fairly complex process. That's why most businesses prefer to use an advanced planning tool. Compatible with modern trip planning systems, APS software transfers order information to vehicle computers. This data helps delivery people to define the route to take.

Network analysis via a logistics APS

APS software makes it possible to graphically model the supply chain. From this tool, the logistics manager maps the various warehouses, production sites and distribution platforms. On each of these elements, it provides information on capacities, costs, constraints and deadlines. By doing so, it can strategically coordinate factories and distribution centers.

APS planning software is one of the tools for optimizing the supply chain. Having a fairly broad purpose, they respond to an increasingly increased need to anticipate the needs of customers. This is in order to meet their expectations as quickly as possible. Moreover, they are not the only ones to provide real support for decision-making and process optimization. Discover all logistics management software and their advantages in this dedicated guide.