Order Promising With ATP and CTP

Today, supply and demand fluctuations have reached unprecedented levels, complicating your ability to confidently provide order promising timeframes. Navigating these turbulent waters demands more than mere production adjustments—it requires a profound understanding of market dynamics. In this dynamic environment, customer demand has emerged as the primary driver of value chains, usurping the traditional role of supply.

The Evolution of Order Promising

In this era of volatility, strategic order promising has become paramount, particularly when demand outpaces supply. Prioritizing orders strategically, especially when faced with constrained inventory, is key to thriving in this challenging landscape. Order Promising has transcended its role as a process and become an indispensable, mission-critical component of modern supply chains. Augmenting your Order Management System (OMS) with intelligent and robust order promising capabilities empowers your organization to not only maximize sales but also harmonize the delicate equilibrium between supply and demand while delivering exceptional customer service.

Order Promising & Allocation Planning Solutions

Order Promising & Allocation Planning Solutions leverage advanced algorithms and logic, including ATP (Available to Promise) and CTP (Capable to Promise), to calculate precise promise dates. These systems take into account the earliest ship and receipt dates, which are determined based on the delivery date control method and transport days. You have the flexibility to choose from various delivery date control methods to align promise dates with your specific business needs:

Sales lead time: This method calculates the delivery date based on the time between the creation of the sales order and the shipment of the items. It relies on a default number of days and does not consider factors like stock availability, known demand, or planned supply.

ATP (Available-to-Promise): ATP is a comprehensive approach that factors in uncommitted inventory, lead times, planned receipts, and issues to determine the quantity of an item available and promise it to a customer on a specific date.

ATP + Issue margin: In this method, the shipping date is determined by adding the issue margin to the ATP date. The issue margin represents the time required to prepare the items for shipment.

CTP (Capable-to-Promise): CTP calculates availability through explosion. It’s important to note that if you’re using Planning Optimization, selecting CTP as the delivery date control method isn’t allowed and will trigger an error during the calculation process.

By integrating these delivery date control methods with advanced order promising solutions, you can confidently make commitments that align with your strategic objectives and meet the unique priorities of your customers and channels while accounting for inventory and capacity availability.

Addressing Supply Chain Constraints

Intelligent solutions offer a lifeline amidst the chaos of supply chain management. They bring clarity and simplicity to the daily intricacies of the supply chain. Whether it’s slashing inventory levels, reducing premium freight costs, bolstering planner productivity, or providing insightful visibility, these tools empower businesses to conquer the challenges posed by volatile markets.

Driving the Promise to Customers

A competitive edge is forged on the foundation of reliable order promises. The seamless connection between Order Promising and Planning ensures the flawless execution of your business strategy. Here’s how:

  • Tailored Promises: Customize order promising policies for different customer segments.
  • Preserving Service Levels: Safeguard service levels for your most valuable customers and channels.
  • Real-Time Commitments: Make real-time promises at scale.
  • Leveraging ATP and CTP Sources: Maximize the potential of Available to Promise (ATP) and Capable to Promise (CTP) sources of supply.
  • Confidence in Commitments: Back your delivery dates with unwavering confidence.

K3 Implementation Services

As the supply chain landscape continues to evolve, intelligent Order Promising emerges as a game-changer. To navigate this landscape successfully, it’s essential to have the right consulting partner and tools by your side. This is where K3 Implementation Services steps in. Our expertise in supply chain management and intelligent technologies, coupled with our deep understanding of your unique business needs, ensures that your journey towards superior order promising and supply chain success is not only efficient but also maximally effective. With K3 by your side, you can embrace the unpredictability of the market with confidence, delivering superior service and achieving remarkable results.

Here are the other supply chain processes we support including demand planning, master planning, and fulfillment provided by our partners like BlueYonder, o9, and Kinaxis.