Omni-Channel Demand Prioritization for Customer-Level Allocation
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Solution Overview
Problem
Existing supply chain planning systems struggle to differentiate service offerings to customers consistently due to complexity issues when planning at the SKU level, leading to overstocking or understocking, and failing to meet customer-specific service levels.
Innovation Solution
A multi-level supply chain planning system that classifies customers and products into segments, calculates customer-specific safety stock, and allocates inventory based on customer-level priorities, providing detailed visibility and linkage across the supply chain to ensure accurate inventory positioning and differentiated service levels.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If supply chain planning is performed at the SKU level with standard processes, then inventory management is simplified, but service differentiation to customers cannot be achieved
Solution Approach 1:
The patent segments the planning system into multiple hierarchical levels (customer level, SKU level, location level) allowing service differentiation at customer level while maintaining simplified SKU-level execution. This enables tailored service for different customers without complicating the overall planning process.
Solution Approach 2:
The patent applies local quality by implementing customer-specific service level targets and allocation rules at the customer level, while maintaining standardized processes at the SKU and location levels. This allows differentiated service where needed without universal complexity.
2Reliability
If service differentiation is implemented at customer level, then customer-specific service levels are achieved, but planning complexity increases
Solution Approach 1:
The patent creates a universal multi-level planning framework that handles both standardized SKU-level planning and customized customer-level service differentiation within a single system. This eliminates the need for separate workaround processes while maintaining reliability.
Solution Approach 2:
The patent adds a customer level dimension to the traditional SKU-level planning, creating a hierarchical structure that resolves conflicts between standardized processes and customized service requirements. This dimensional addition enables reliable service fulfillment without procedural complexity.
3Adaptability or versatility
If inventory is positioned at the right time and place for customer-specific service levels, then service differentiation improves, but inventory allocation complexity increases
Solution Approach 1:
The patent segments inventory allocation into hierarchical levels (customer, SKU, location) with automated allocation rules at each level. This enables differentiated service offerings through structured segmentation rather than complex ad-hoc allocation processes.
Solution Approach 2:
The patent implements preliminary action by pre-configuring customer-specific service level targets and allocation rules in advance. This allows the system to automatically execute differentiated inventory positioning without real-time complex decision-making, reducing allocation system complexity.
Data Source
AI summary
A system and method are multi-level replenishment planning with independent channel demand prioritization that initiates production of a product by a first supply chain entity that receives orders for the product from a second supply chain entity and supplies the product to a third supply chain entity that receives orders for the product from a fourth supply chain entity. Embodiments further disclose calculating the supply of the product for the first supply chain entity for a supply allocation duration time period, receiving demand orders high priority demand orders from the fourth supply chain entity, allocating supplies within the supply allocation duration time period to firm plan arrivals based on a location priority and a demand date, and generating a shipment recommendation for each allocated supply that meets a firmed planned arrival.