Success story Supply Chain
Logility provides
Sigma-Aldrich
with the formula
for successful
replenishment planning
igma-Aldrich is a leading life
S
science and technology company
Jeff Killion: “Logility combines supply chain
expertise with technology innovation and
that manufactures biochemical
really fits the unique demands of our
and organic chemical products
specialised business.”
and kits that are used in scientific
research, biotechnology, pharmaceutical
development and disease diagnosis. Sigma-Aldrich’s growth is mostly due to
Sigma-Aldrich customers include life science acquisitions in the fine chemicals, biologicals
companies, university and government and antibodies areas, and through expansion
institutions, hospitals and commercial labs. into new markets. The central planning team
In the industrial area, Sigma-Aldrich markets works with any new locations to immediately
stains, dyes, fragrances and flavours. deploy Logility Voyager Solutions in order to
Sigma-Aldrich operates in 35 countries and ensure a standard set of capabilities across
sells chemicals worldwide. As a growing the company.
global company with 300,000 SKUs stocked simulation capabilities have led to increased
at 20 locations around the world and 80,000 Huge competitive advantage service levels for Sigma-Aldrich. The company
customer ship-to locations, efficient demand Sigma -Aldrich replenishes globally on a daily uses cost analysis to determine the potential
and replenishment planning processes are basis, and runs all 7 million items through the dollar value of increasing the service level, by
extremely important at Sigma-Aldrich. The system overnight for daily replenishment. The ten percentage points, for example. Sigma-
planning team at Sigma-Aldrich consists of process begins at 6:00 p.m. each night and is Aldrich is now better informed when making
100 people who focus on replenishment, complete by 11:00 p.m. Jeff Killion, director of decisions and is able to not only improve
stocking analysis, inventory and forecasting. global planning at Sigma-Aldrich, said: “Logility service levels, but also meet budgets easily.
The planning team is headquartered in St. Voyager Solutions keeps up with the pace
Louis, but has representation all over the world. of our business. The ability to get orders in Initially, the flexibility and speed allowed by
the same day gives us a huge competitive Logility Voyager Solutions to immediately
Sigma-Aldrich implemented Logility Voyager advantage. Our cycle time to our customers, optimize the entire supply chain by looking at
Solutions including Voyager Demand Planning, particularly customers in Asia, is as good as, factors such as ocean freight, lot sizes, and
Voyager Inventory Planning, and Voyager if not better, than any of our competitors.” forecast accuracy was the biggest focus for
Replenishment Planning in 1995, integrating Sigma-Aldrich. Soon after, Sigma-Aldrich was
these solutions with the company’s ERP system, Sigma-Aldrich forecasts products by region, looking for additional opportunities through
SAP. Forecasting and controlling inventories and at the customer level for bulk business. Logility Voyager Solutions to take their supply
for a wide range of products and quantities Approximately seven million items are managed chain to the next level. The company continues
is a challenge, and with such a large product through Logility Voyager Solutions at a very to increase customer service levels, optimise
portfolio, Sigma-Aldrich saw the need for high accuracy level without any manual inventory and collapse cash-to-cash cycles.
supply chain planning capability beyond intervention. Other core items are ‘A’ items that “Logility combines supply chain expertise
what SAP offered. Logility gave Sigma-Aldrich the planning team has the ability to tune. “The with technology innovation and really fits the
its first global system, which provided the flexibility to forecast at the customer level for unique demands of our specialised business,”
company with stocking policy consistency, some items, and forecast the bulk of the others said Killion. “There is no ‘silver bullet’, but
visibility into both local markets and global systematically was a huge advantage for us,” Logility comes close, giving us tremendous
business, and a centrally controlled process. explained Killion. Logility Voyager Solutions’ flexibility and payback.” circlesolid
www.logisticsit.com
MANUFACTURING
December 2009 &LOGISTICSIT
37
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