Effective inventory management & deployment for highly volatile demand
A leading consumer and industrial parts manufacturer had difficulty deploying inventory across their 8 facilities in US. Out of territory shipments hovered around 35% and customer lead times were higher than desired. Our solution involved segmenting the items across multiple dimensions by facility. Standard inventory policies were established by segment driven by desired service levels. A combination of cycle and safety stock requirement is calculated at an item level based on forecast accuracy, demand volatility and supply volatility. Ongoing requirements across facilities, by item was estimated on a weekly basis and sent as requirements for production scheduling. A deployment quantity by item by facility is estimated based on finished goods quantities at the end of production run, while maximizing the creation of full truckloads.
Benefits include
- A 70% reduction in Out of Territory shipments for the fast movers in year 1
- About 15% increase in production capacity due to consolidated runs by item and about 10% reduction in warehouse space
- 5% reduction in freight costs due to better outbound truck utilization
- There was no net increase in overall inventory value held
Get ready to transform your Supply Chain Planning and Execution
Get what you want – All or some
Pay for functionalities you need and use – mix and match relevant functionalities across planning, operations, warehousing and transportation in one seamless platform at the price of one system. Don’t pay for entire WMS, TMS and planning systems while using only 20% of functionalities.
Enthusiastic Adoption
From the functionalities to the user interface – everything is designed to suit the customer based on input from the potential users. The adoption of the system is immediate and natural with little training or change management.
Universal Data
One system enables universal data collection across the entire supply chain, simplifies access and enhances data integrity. Customers can quickly and easily access all relevant supply chain data in one place.
Finger-tip Analytics
Our advanced analytics and planning engines leverage data in the Universal data layer. Deeper insights across the entire supply chain generate actionable recommendations that benefit the global organization rather than local functional departments.
Collaborative Problem Solving
Seamless unification of processes across different functional areas provides real-time visibility into cross-functional decisions as they happen and promotes enhanced collaboration.
Lightening deployment
What usually takes months to implement in traditional enterprise systems, takes weeks to implement in Plan2Execute. Start using the system and realize value faster than ever.
Exception Based Management
Important exceptions are identified and presented to the stakeholders in an actionable way. Inadequate stock, order end-dates, delivery delays etc. are promptly flagged. Exceptions warrant human intervention. The system takes care of the mundane.
Real-time Visibility and Response
Users get real-time visibility into the progress of processes and can flag, analyze and respond without delays. We enable complete control and seamless cross communication across functional silos to avoid latency.