Case Study: Shopery as a Complementary Tool for Manufacturers’ Demand Forecasting and Procurement Processes

The Challenge: Gap Between Forecasting and Procurement

Manufacturers today rely heavily on Enterprise Resource Planning (ERP) systems and Material Requirements Planning (MRP) tools to manage and predict the demand for raw materials, components, and finished goods. These systems utilize historical data, trends, and sales forecasts to predict future material requirements, which should theoretically streamline inventory management and procurement processes.

However, there is a critical gap: while ERPs and MRPs provide predictions about what will be needed, they don't offer the tools necessary to efficiently procure the required materials once that demand is identified. Manufacturers typically must rely on manual processes or third-party platforms to request quotes, negotiate with suppliers, and place orders. This inefficiency in procurement can lead to delays, missed opportunities for cost savings, and challenges in maintaining consistent supplier relationships.

How Shopery Fills the Gap

Shopery addresses this gap in the procurement process by seamlessly integrating with existing ERP systems. Here's how it works:

1. Demand Prediction: The ERP or MRP generates demand forecasts for materials based on production schedules and sales trends. However, the system stops short of automating the procurement of these materials, leaving companies to manually request quotes, negotiate, and finalize deals.
2. Automating RFQs via Shopery: Shopery bridges this gap by converting the demand forecasts from the ERP system into Request for Quotation (RFQ) events. These events are automatically triggered through Shopery's platform, allowing manufacturers to instantly reach out to a wide pool of suppliers who can respond with their offers.
3. Supplier Competition and Bidding: In traditional procurement, the supplier selection process is often slow and cumbersome, with manufacturers sending out emails or making calls to suppliers to negotiate terms. Shopery turns this into a competitive process by allowing suppliers to bid on the RFQ in real time, ensuring manufacturers receive the best offers based on both price and other performance metrics.
4. Real-Time Adjustments: Shopery offers a dynamic platform where RFQs can be adjusted in real time, providing a more responsive approach than traditional procurement systems. As suppliers submit their offers, they can also modify their offer or update price in response to performance in relation to competing providers.
5. Data-Driven Decision Making: Shopery doesn’t just facilitate the RFQ process—it also facilitates intuitive evaluation process where best price is not the only factor. This allows manufacturers to make informed decisions taking into account multiple factors, such as delivery location, quality or other metrics of the provider.
   
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Where Shopery Fits in the Manufacturing Cycle

It’s important to understand where Shopery adds value and where it’s not redundant, especially in comparison with MRPs.

1. Where MRPs Excel:
   • Inventory Management: MRPs are excellent for tracking inventory levels, predicting future needs, and generating production schedules.
   • Material Requirements: MRPs are designed to assess how much raw material is needed based on production plans and order quantities.
   • Long-Term Forecasting: MRPs are built for long-term material planning, helping companies anticipate raw material requirements far in advance.
2. Where MRPs Fall Short in Procurement:
   • Supplier Management: While MRPs can generate material requirements, they lack the functionality to manage supplier relationships, send out RFQs, or track supplier performance.
   • Real-Time Procurement: MRPs don’t provide a way for manufacturers to dynamically request quotes from suppliers based on changing demand or urgency.
   • Price Optimization: MRPs do not allow for real-time price competition between suppliers, which means manufacturers may miss out on the best pricing opportunities.
   • Supplier Selection and Evaluation: Without a mechanism for tracking supplier performance, MRPs can’t provide the data manufacturers need to choose the best suppliers over time.
3. Where Shopery Complements MRPs:
   • Automated RFQs from Forecasting Data: Shopery takes the forecasts generated by the ERP or MRP and automatically triggers RFQ events, reducing the need for manual intervention and streamlining the procurement process.
   • Supplier Bidding and Price Comparison: Shopery turns the procurement process into a competitive auction, where suppliers bid for contracts in real time, driving down costs for manufacturers.
   • Performance Metrics for Decision Making: Shopery aggregates key supplier performance metrics, such as delivery time, price trends, and reliability, helping manufacturers make data-driven decisions on which suppliers to engage in the future.
   • Filling Gaps in Supplier Communication: By acting as a centralized platform for managing RFQs, responses, and negotiations, Shopery ensures that manufacturers can easily communicate with suppliers, even if they don’t have established relationships with all of them
     
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Benefits of Integrating Shopery with ERPs

The integration of Shopery with an ERP or MRP system results in a highly efficient, streamlined procurement process. The benefits include:

1. Improved Efficiency: By automating the RFQ process and integrating it with the ERP’s demand forecasting, manufacturers no longer need to manually initiate procurement activities, saving valuable time.
2. Cost Savings: Real-time supplier bidding leads to lower material costs, as manufacturers are able to select suppliers based on price and performance rather than relying on fixed-price agreements.
3. Supply Chain Agility: With Shopery, manufacturers can adjust their procurement needs as production schedules and demand forecasts change, ensuring they can adapt quickly to any shifts in the market or supply chain.
4. [FUTURE] Data-Driven Procurement: The performance data captured by Shopery allows manufacturers to optimize supplier selection over time, resulting in better supplier relationships and more favorable pricing conditions.
5. Faster Decision Making: Shopery’s dynamic platform enables manufacturers to make faster decisions in real time, whether they’re adjusting a forecast or selecting a new supplier based on current offers.

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Conclusion: Shopery as the Missing Piece in the Procurement Cycle

Shopery plays a crucial role in closing the gap between material demand forecasting and procurement. While ERPs and MRPs provide essential data about what materials are needed, Shopery automates and optimizes the process of actually obtaining those materials. The integration of Shopery with ERP systems ensures that manufacturers can not only predict their material needs but also procure them efficiently and cost-effectively in real time.

By automating the RFQ process, enabling competitive bidding, and providing detailed supplier performance insights, Shopery complements the capabilities of ERPs and MRPs, ensuring manufacturers can operate at peak efficiency. This integration leads to cost savings, improved supplier relationships, and more agile procurement processes, giving manufacturers the tools they need to succeed in today’s competitive market.

Take your demand forecasting and procurement processes to the next level with Shopery as your complementary solution. Seamlessly bridge the gap between your ERP or MRP tools and efficient procurement workflows, ensuring that your material needs are met with precision and speed. Book a demo with our experts today and discover how Shopery can empower your team to achieve better results, greater cost savings, and a streamlined supply chain. Let us help you unlock the full potential of your existing systems.

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