Introduction
The customer was challenged with high working capital expenses, customer service issues, wastage, expiry and write offs. Inventory policy was maintained by planner intuition and rule of thumb.
The company’s top objectives
Improve finished goods service level to markets
Reduce working capital and inventory levels
Institute a scientific optimization based approach to set inventory targets which is scalable and sustainable
The resolution
Implemented SAP EIS to optimally set inventory targets across the supply chain, by considering desired customer service levels, demand and supply variability, planning master data
Designed a fully automated and integrated solution to source planning master and transactional data from source systems such as SAP ECC/APO/BW into SAP EIS, optimize and update safety stocks/planning parameters in SAP APO/ECC for execution.
Implemented AIM (Analytics and Intelligence Module) for dashboarding and reporting of inventory, service level and other KPIs.
The key benefits
Improved customer service levels
Reduced inventory and working capital
Optimized inventory management processes yielding higher efficiency, productivity and business adoption
