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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