Revamped supply planning and S&OP processes for a rapidly growing company with limited resources, resulting in significant financial savings including $400K annual inventory cost reduction and improved service levels.
Approach
- Assessed existing supply and demand planning processes and technology maturity
- Assessed data quality and maturity, both transactional (e.g., sale orders, inventory, etc.) and planning (e.g., demand forecast, marketing plans, etc.)
- Built business case for to-be implementation of process and technology improvements to facilitate S&OP.
- Company implemented Supply and Demand Planning applications to centralize planning of supply/demand and align sales and operations via a revamped S&OP process.
Results
- Process impact-
- Aligned the entire organization to execute against the same plan (S&OP).
- More robust scenario planning during disruptions.
- Automated process/planning solution, easily adaptable to a growing business.
- Financial impact-
- 97.5% Service level improvement, 97.5% -> 98% (~$38K in lost sales avoidance).
- 25% 25% reduction in on-hand inventory $8M -> $6M (~$400K savings in annual inventory holding costs).
- 35% 35% reduction in product expediting (~$56K in savings).
- $60K Planner efficiency gains, ~$60K saving.
Segment: Life Sciences · Services: inventory-management, supply-chain-planning