Our client is a global technology and industry leader in vehicle architecture, developing safer, greener, and more connected solutions that enable the next generation of autonomous vehicles, smart cities, and connectivity. The business operates as a component part of the automotive industry supply chain.
BUSINESS CHALLENGES
Bringing together all the data required to manage inventory was proving a challenge. Planners were brining data from multiple systems into spreadsheet models to manage inventory and keep production lines running. To do this they need to consider current stock level, demand, purchase orders and delivery schedules. Using multiple spreadsheet models was time consuming and prone to error and often resulted in the business incurring unnecessary last-minute orders. This risk was often mitigated by over-ordering that was driving up levels of excess stock in the medium to longer term. Planners were finding it difficult to assess strategies to reduce excess inventory and the capital tied up in stock.
SOLUTION
Profit& delivered an Inventory Planning Solution on the Anaplan Platform. This brings all the data required for inventory planning together in one place. This includes sales orders, demand forecasts, purchase orders, stock records and production schedules. Planners have a single report that shows stock levels alongside stock policy over time. This gives them a forward view of inventory levels, so that they can ensure inventory remains within stock policy, and a clear view of where inventory is in the supply chain at any point in time, including warehousing, orders placed, expected delivery dates, in-transit and in production.
Scenario planning allows planners to test different approaches to managing stock policy and excess and obsolete stock. Planners can compare forecasts with actual sales orders. This provides insight into forecast accuracy, helping them to consider different strategies to drive greater efficiency in Inventory management, and reduce the occurrence of excess and obsolete stock.
The client monitors KPI’s from the Management Dashboard. Putting all the information they need to take action to resolve issues with stock policy as they arise.
BENEFITS
Replacing legacy solutions and multiple spreadsheets with the Anaplan platform for inventory planning provides clear visibility of inventory across the entire supply chain, from orders placed, through to production. Accuracy and reliability of data is assured and the cost of errors, last minute ordering, and the capital tied up in excess stock is reduced.
Planners spend less time manipulating spreadsheet data and spend more time working through scenarios to test different strategies for stock management, such as different ordering volumes and timings, comparing forecasts with actual demand, or for the disposal for excess stock.
“The solution provides robust, reliable data to give our team confidence that production lines will keep running. We have all the information needed to make small adjustments to our inventory plan daily to deal with issues before they become risks. The amount of stock that we have on-premise at any one time is reduced, and we have better control over excess and obsolete stock.”
