Production planning and -control with Push and Pull

Fast and flexible thanks to demand-driven productions

SCM-planning represents a central component of our expertise at SALT Solutions. We offer a spectrum unique in history, since we are not just assisting your planning but also take care of operatively realizing results and guarantee a 24/7 operation of your solutions.

We have the tools to optimally embed your production planning and -control into your business processes in SAP ERP. Our SALT Add-On Lean Production and the SALT Add-On Control Panel are extending the SAP Standard, supporting either Push- or Pull processes according to your corporate philosophy.

MRP und Push vs Pull

MRP has been successful since 1957. But …

Since the late 1950, Material Ressource Planning (MRP) has been on the winning track. Up until now not a lot of its key premises have changed and MRP is still the tool when talking about the production of large lot sizes without variations. However, customer demands and therefore the way how goods are produced are changing rapidly. Customers expect almost immediate deliveries of highly individualized products.

Trends such as Mass Customization and lot size 1 with the MRP method can only be realized with many side effects such as the bullwhip effect or too high warehouse stocks. Enterprises usually react with two strategies: the Push-principle is based on optimizing planning processes and does not promise long-term success as this does not provide any additional flexibility. Rather, it is recommended to implement a demand-driven Pull-system which leads to increased flexibility and speed.

The Push-system

Centrally controlled production based on demands

When following the traditional Push-principle, enterprises try to „polish their crystal ball“. Which means, they want to get a handle on high volatility and flexibility by improved analyses and plannings. You are looking to optimize structured data such as time sequences and customer orders with modern Machine Learning or heuristics. You are also including more and more unstructured data such as geopolitical turbulences, changes in weather or the influence of social media. For example, the unexpected heat wave which lasted for several weeks during the soccer world cup in 2016 has led to a very high demand for beverages during public viewings - manufacturers, however, were not able the meet this demand up until the end of the world cup. Even social media posts can increase demands without warnings, for example when top influencers such as Kylie Jenner advertise one particular product. So detailed plannings or analyses do not guarantee long-term success if production capacities are not made more flexible.

Technical realization of a Push-controlled production:

  • Strategical and tactical demand planning with SAP IBP
  • Demand disposition and customer orders with S/4HANA incl. MRP and Add-Ons
  • Operative planning and control with embedded PP/DS for SAP S/4HANA
  • SALT Add-On Control Panel

The Pull-System

Centrally controlled production based on demands

When following the traditional Push-principle, enterprises try to „polish their crystal ball“. Which means, they want to get a handle on high volatility and flexibility by improved analyses and plannings. You are looking to optimize structured data such as time sequences and customer orders with modern Machine Learning or heuristics. You are also including more and more unstructured data such as geopolitical turbulences, changes in weather or the influence of social media. For example, the unexpected heat wave which lasted for several weeks during the soccer world cup in 2016 has led to a very high demand for beverages during public viewings - manufacturers, however, were not able the meet this demand up until the end of the world cup. Even social media posts can increase demands without warnings, for example when top influencers such as Kylie Jenner advertise one particular product. So detailed plannings or analyses do not guarantee long-term success if production capacities are not made more flexible.

Technical realization of a Push-controlled production:

Production processes need more than the standard

Your optimization potential along the Supply Chain in production are immense. As IT solutions, fully SAP integrated and programmed in ABAP, our SALT Add-Ons can be integrated into your systems without any interfaces or additional administration efforts. And the administration of additional hardware is also avoided.

Experienced implementation partner with process competence

In addition to application-oriented IT know-how, our experts particularly bring process competence from the fields of production into your project. We assist you with our corporate approach from the analysis of your production processes, the design and development of individual IT solutions to the implementation and training of your users on all levels. This guarantees that your solution is fully operable right after the go-live.

Get in touch with our experts and get to know which solution supports your processes most efficiently. Experience all advantages of our Add-Ons during one of our live demos.

Learn how to make your processes even more effective.

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