High tech

How do you plan around 50-week component lead times?

When a single memory part runs past a year, a 13-week planning horizon is not a plan. It is a hope.

June 20264 min read

Why standard planning breaks under allocation

With AI demand absorbing much of global memory supply, lead times on constrained parts have stretched well past a year, and standard planning horizons cannot see far enough to act.

The result is a build held hostage by one line item while everything else sits on the shelf.

Plan to clear-to-build, by part criticality

The number that matters is clear-to-build: the share of constrained components secured against committed orders. Below it, revenue is at risk no matter what else is in stock.

The discipline is a longer horizon for constrained commodities and buffers set by criticality, not a flat safety stock, on clean component data, the kind IPC standards exist to keep consistent across suppliers.

Where the ERP closes the loop

A connected bill of materials lets procurement see exactly which finished-goods orders a single constrained part gates, so scarce supply is steered to the highest-margin and contractual commitments first.

On Hudace, demand sensing blends backlog, sell-through, and supplier signals to re-time builds, and Xenon AI surfaces the gating part before it stops the line. A planner makes the call on where it goes.

The numbers to watch

Watch the commitment you can actually meet, not just parts on hand.

Clear-to-build

Constrained components secured / required for committed orders. Below 100% means revenue is at risk.

Allocation coverage

Share of demand for a constrained part you can actually cover. Drives which orders get the supply.

Planning horizon

Weeks of forward visibility. Must exceed the longest constrained lead time to be a plan, not a hope.

On-time-in-full

Orders delivered complete and on time. The commitment the whole exercise protects.

See supply planning on Hudace

Talk to our team about connecting your BOM, demand signals, and allocation on one platform.

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