Client Success Stories: End to end Supply Chain Planning
Client
- Consumer Durables industry
- $2.2 billion European division
- 2500+ items, 4 DCs, 6 plants, up to 3 level BOM
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- replenishment lot size restrictions based on container size
- setup and minimum lot size constraints for manufacturing
Goals
1. Reduce finished goods and component inventory across a multi-echelon manufacturing+distribution network while meeting a two-tier target service level
2. Synchronize plans across manufacturing and commercial organizations
Approach
- Compute optimal finished goods and component inventory targets
- Build an integrated planning model that generates forecasts and coordinated replenishment / manufacturing plans
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- Forecasting, replenishment and manufacturing plans for 12-weeks
Results
- $50 million annualized savings in total inventory
- Significant reduction in distribution / expediting costs>
