CX70 parts Chongqing Zhongheng Chuangxin Auto Parts Co., Ltd , https://www.zhcx-autoparts.com
In a highly configurable manufacturing environment, forecasting finished goods can become an intricate and challenging task. When numerous components are interchangeable, the number of possible final products can skyrocket. Traditional MRP systems often force businesses to forecast every single finished product, which is not only impractical but also unrealistic in many cases.
To address this challenge, many advanced solutions introduce the concept of a “Planning BOM.†This allows companies to forecast at a higher level within the production process, making it easier to manage complex configurations. In this article, we’ll explore how Epicor Kinetic supports Planning BOMs and how integrating them with Smart Inventory Planning and Optimization (Smart IP&O) can significantly improve forecasting accuracy and operational efficiency.
**Why Use a Planning BOM?**
Traditionally, each finished product or SKU has a fixed bill of materials (BOM). If you want to plan based on forecasted demand, you’d typically forecast demand for each product and then let MRP break that down into component requirements. However, in industries where products are highly customizable—like the smartphone industry—this approach becomes unmanageable.
Imagine a scenario where customers choose from multiple screen sizes, storage options, and colors. Forecasting demand for each combination would be nearly impossible due to low volume and unpredictable patterns. Instead of forecasting at the configuration level, companies often shift their focus to the component level, relying on MRP to respond to actual orders. While this works, it limits the ability to incorporate strategic forecasts like promotions, new projects, or sales opportunities.
This is where Planning BOMs come into play. They allow businesses to forecast at the model level, using predefined ratios to allocate demand to different configurations. For example, if 60% of customers choose 128GB storage, 30% go for 256GB, and 10% prefer 512GB, the Planning BOM can distribute the forecast accordingly. This makes forecasting more manageable and aligns it with business strategy.
**The Importance of Accurate Forecasting**
Even with a well-structured Planning BOM, the quality of your forecast still plays a critical role. Epicor Kinetic doesn’t generate forecasts on its own, and when it does, the settings are often too complex for regular use. As a result, many businesses rely on manual Excel-based forecasts, which can lead to inaccuracies and missed opportunities.
Manual forecasting lacks the ability to identify trends, seasonality, or other important patterns. It also tends to over-rely on sales or customer input, which may not always be reliable. Without a systematic approach, MRP outputs will be unreliable, leading to inefficiencies and mistrust in the system.
**Smart IP&O: A Complete Solution**
Smart IP&O enhances Epicor Kinetic by providing a robust platform for demand planning and inventory optimization. Here’s how it works:
- **Smart Demand Planner**: This built-in forecasting tool generates statistical forecasts, lets planners adjust them, and integrates external data such as sales or customer forecasts. The resulting forecast is then imported into Epicor Kinetic, where MRP uses it to plan material requirements.
- **Smart Inventory Optimization**: This module helps set optimal min/max and safety stock levels for both finished goods and raw materials. It considers factors like supplier lead times, job usage, and actual sales data to optimize inventory efficiently.
By combining these tools, businesses can ensure accurate demand planning and better inventory control, even with complex product configurations.
**Enhance Your Epicor Kinetic System**
Smart IP&O is designed to seamlessly integrate with Epicor Kinetic, offering powerful features that support demand planning, forecasting, and inventory optimization. It automates forecasting for large item lists, enables intuitive adjustments, and tracks forecast accuracy. This allows businesses to create more accurate, consensus-based forecasts that reflect real market conditions.
With flexible product hierarchies, Smart IP&O is ideal for forecasting at the Planning BOM level, ensuring that key demand patterns and business knowledge are captured effectively. It also enables optimal safety stock levels across all BOM levels, helping reduce excess inventory and stockouts.
By leveraging Epicor Kinetic’s Planning BOM capabilities alongside Smart IP&O’s advanced features, companies can meet customer demand more accurately and efficiently, regardless of product complexity. This integration not only improves forecast accuracy but also boosts overall operational performance, giving businesses a competitive edge in today’s dynamic market.
Chongqing Zhongheng Chuangxin Auto Parts Co., Ltd
We sell Changan CX70 Parts,
Including Engine accessories: mainly including engine, Engine Assembly, throttle body, intake manifold, exhaust manifold, cylinder block, cylinder head, camshaft, crankshaft, connecting rod, piston, piston ring, gasket, Spark Plug , oil seal, belt, tensioner, engine repair kit, timing kit, etc.
Transmission system accessories: mainly including Clutch , Gearbox , gear lever assembly, and reducer. Transmission shaft, etc.
Brake system accessories: mainly including brake master cylinder, brake caliper, brake assembly, brake pedal assembly, steering knuckle, Brake pads, wheel hub bearings, brake discs, brake drums, etc.
Steering system accessories: mainly including Steering Gear, ball joint pin, steering rod, steering transmission shaft, etc.
Suspension accessories: mainly including rear axle, front subframe, Shock Absorber, stabilizer bar, front swing arm, stabilizer bar ball joint, engine suspension cushion, etc.
Electrical instrument accessories: mainly including sensors, wiring harnesses, combination instruments, window regulator switches, windshield spray cans, light switches, wiper switches, batteries, etc.
Automotive lighting fixtures: including decorative lights, fog lights, ceiling lights, headlights, brake lights, reverse lights, turn signals, etc.
Automotive interior accessories: interior panel, steering wheel, dashboard, auxiliary dashboard sunshade, etc.
Automotive exterior accessories: including wheel cover, body color strip stickers, license plate holder, weather shield, etc.
Car body and accessories: front bumper, rear bumper, front bumper grille, fenders, front doors, rear doors, door outer guards, back door, wipers, car glass, seat belts, airbags, etc.
Cooling System Components: radiator, radiator fan, expansion tank, condenser, air conditioning compressor, evaporator, air conditioning compressor suction pipe, air conditioning compressor discharge pipe, etc.
Complete variety, stable quality, welcome to purchase