About the Company |
One the largest Consumer Products company in various products categories including Personal Care, Baby Care, Nutritional Health, Animal Health and Pharmaceuticals.
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Business Situation |
• The client had acquired another consumer products company and was in a rapid expansion phase.
• 32 Manufacturing Plants • More than 3000 Products across 3 distribution centers • 40 distribution centers • 80,000 plus Planning Combinations (Material-Ship-to-Location) • Excel files to consolidate forecast data from field teams • Planning processes loosely integrated • Numerous service issues, late deliveries, renegotiated orders • No linkage between volume forecasts and financial forecast
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Business Solution |
• Implemented Lighthouse Demand planning and Replenishment Planning
• Integrated with SAP ERP system • Built 12 months’ forward demand visibility and demand supply balancing process • Increase forecast accuracy to improve supply chain effectiveness • Align production scheduling with monthly supply plan to reduce inventory levels and reduce order lead time • Establish rules for order commitment process to improve order fulfillment and customer satisfaction • Align demand plan with financial forecast to improve financial forecasting accuracy
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Business Benefits |
• Reduced instability in inventory levels due to improved forecast accuracy
• Improved supply planning accuracy due to integration with production scheduling • Improved order fulfillment and customer service • Improved raw material forecasting for suppliers • Optimized safety stock levels based on service level and profit objectives
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Key Performance Indicators |
• S&OP KPIs (after 6 months):
• Forecast Accuracy: 40% to 70%
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