DEMAND PLANNING
We STREAMLINE your Demand Planning
Common Tasks:
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Develop robust demand planning model based on historic data and sales forecast
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Fix broken demand planning process to achieve greater planning accuracy
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Implement SIOP to institutionalize and foster reliable communication and immediate feedback
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Develop a collaborative planning methodology including customers and suppliers to optimize planning accuracy and to avoid excess inventory
Methods and Tools:
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SIOP
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Collaboration
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Delphi Method
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Life-cycle Analysis
Reference Industries:
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Manufacturing
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Automotive
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Engineering
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Parts and Components
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Steel and Metals
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Food
Ø Project Duration:
Ø Project Payback:
4 - 8 weeks
4 - 6 months
bottom line optimization 15 - 25%
Industry:
Company Size:
Project Location:
Leading Construction Components Manufacturer
2,000+
United States
After a period of substantial growth, our client received severe customer complaints due to declining OTIF (on-time in full) performance and an increasing finished goods backlog. 2 of their top 5 key accounts threatened to end the relationship, if the finished goods backlog would not be significantly reduced within a 2-4 months period.
STREAMLINERS' Approach and Solution
Meeting:
Understand scale and impact of finished goods backlog
Deep Dive:
Root cause analysis revealed main drivers for backlog: no alignment between sales, planning, production and warehouse
Hypothesis:
Develop and implement SIOP (Sales, Inventory and Operations Planning) as a planning methodology and SIOP Loops as alignment routines among stakeholders
Project:
1 consultant
8 weeks
Deliverables:
SIOP and SIOP Loops implemented
Backlog reduced by 35% (end of project) and by 75% (4 months after project start)
Bottom Line Impact:
Both key accounts retained due to substantially improved OTIF performance
Order to cash cycle reduced
Inventory and working capital reduced
Root Cause Analysis
Fees vs. Bottom Line Impact
