RapidFlow Insights

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Delivering on Time: The Importance of Global Order Promising and Allocated ATP in Supply Chain Management

Delivery

Hey there! Today we are going to talk about one of the most important aspects of supply chain management: keeping up with the promise date. In today’s fast-paced world, customers expect their orders to be delivered on time, all the time. But how can we ensure that we meet these expectations?

One solution to this problem is Global Order Promising, or GOP. This application within the VCP area ensures that we maintain the right order promising date. It helps us keep up with the inventory while maintaining our customers’ trust. But for a GOP system to work correctly, we need to have the correct setups, lead times, and data control in place.

Without the correct setups, we cannot promise a practical date. We need to have accurate data on lead times and available inventory levels to make sure we can deliver on time. Inaccurate data can lead to over-promising and under-delivering, which can negatively impact on our relationship with our customers.

Data control is also critical. We need to make sure that the data we are using is up to date and accurate. If we have outdated data, we risk promising a date that we cannot meet, which can cause delays and unhappy customers.

But what is ALLOCATED ATP? ATP stands for Available to Promise, which is the amount of inventory that we can promise to our customers. ALLOCATED ATP considers the inventory that has already been promised to other customers. It helps us avoid over-promising and under-delivering by making sure that we have enough inventory to meet our commitments.

In conclusion, keeping up with the promise date is crucial in supply chain management. A GOP system can help us maintain our customers’ trust while keeping up with our inventory levels. But we must have the correct setups, lead times, and data control in place to make sure that we can promise a practical date. Additionally, using ALLOCATED ATP ensures that we do not over-promise and under-deliver, which can harm our relationship with our customers.

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