A Premier Biomedical Device Manufacturer
Revenue: USD 800 Million
Problem
- Lack of timely visibility to demand forecasts across customer segments and product categories affected availability of products, timely introduction of new products, ramp down of older products and assessment of impact on inventory spread across the supply chain.
- Lack of clear demand picture posed difficulties in planning for specialty materials that were critical for sourcing.
Solution
- The solution created a baseline statistical forecast that was used to plan for Demand Planning.
- Created Product Lifecycle Planning for phasing in and phasing out of products with a clear view of inventory picture.
- Dependent Demand forecasting using bills of material to feed into material sourcing.
- Customer Segmentation Analysis to segregate strategic customers from others and define separate SLAs.
Results
- Aligned Supply Chain forecast with Commercial & Financial forecast
- Defined effective Service Level Policies and Inventory Targets for customers based on their historical and forecasted sales, using the segmentation rules. This helped drive profitability keeping costs in check.
- Allowed more informed decisions on timing new product introductions.
- Improved supplier coverage for specialty materials that helped procurement.
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