Food Logistics 100
Success Stories

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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