Today, we are excited to share with you a very interesting feature of Adifo’s ERP ‘MILAS’, allowing you to gain better insights in the supply forecast, based on the sales agreements.
Sales agreement raw material demand comparison with your purchase contract portfolio
It is common practice in the nutritional supply chain for companies to try to close a certain amount of committed sales agreements with their customers. The goal is to reach a win-win situation:
- the customer is sure that the necessary products will arrive on time and at the agreed price
- the producing company has a better assurance of the committed quantity.
The process is based on the sales agreement quantities in combination with the current recipe for the finished product. This results in the required quantity of the raw materials. To achieve the goal, one must compare those figures with the forward purchase contract quantities resulting in better insights, if the company has sufficient raw materials to keep manufacturing.
Because of the volatile nature of the agricultural business – new agreements are closed, recipes are changing,… Today your company might be low on raw materials, but it might not be the case tomorrow.
Conclusion
By implementing this process, companies in the nutritional supply chain are operating based on real data of actual sales agreements, which, in combination with other factors, leads to much more specific and profitable purchase decisions. The MILAS ERP-system completely automates this process, allowing production companies to focus more on their core business, leaving the software maintenance and management to Adifo.
Supported Dynamics platforms
The described feature is currently available in Microsoft Dynamics AX2012 R3 based MILAS. Adifo is in the process of transferring this feature along with many other MILAS features to the new Microsoft Dynamics 365 for Finance and Operations platform. We will update you about the progress continuously.