Demand/Supply Planning Leads High Performance ISC:
Industry: Business Equipment (large corporation)
Opportunity: Gain asset management improvements (inventory reduction) through development/installation of an efficient and agile demand driven S& OP process.
Mission: Apply advanced SCM practices to the Supply/Demand Process to realize lower logistics costs, improved asset management and consistent customer order satisfaction.
Results (after 1 year pilot):
- 57% reduction in average product inventory
- Saving for logistic costs of $8.3M (inventory carry cost)
- Maintained customer satisfaction levels for order delivery performance
Actions: Led a cross-functional team in the development and pilot implementation of a demand driven supply planning process with these actions:
- Cycle time reduction of planning process:
- Move corporate forecast from quarterly to monthly
- Move supply/demand process from monthly to weekly
- Reduced levels of management in process
- Product manager direct to operations manager
- Cycle time reduction of manufacturing/supplier processes
- Establish new rules of flexibility
- Developed detail process for the weekly Production Planning Process:
- Information flow/data management
- Attendee’s roles & responsibilities
- Empowerment rules
- Reporting structure
- Develop supporting IT tools:
- Real time order and install data
- Min/Max planning tool(control limits)
- Material requirements simulation tool
- Global PPP communications
- Establish new and revised KPI’s (congruent goals)
- Consolidated finished product inventory to national distribution level.
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