P
lanning Opinion
supply chain and calculates the full impact of alternate inventory strategies on the performance of the entire supply chain.
HAVI Global Solutions finds the balance
HAVI, a provider of packaging solutions, analytics and supply chain services has many customers in the food service industry where service level requirements are extremely high. To balance the high service level demand with costs, the supply chain team identified the need for greater visibility and spent considerable time evaluating the benefits of MEIO. The company realised each supply chain operated independently, setting individual safety stock levels. This created redundant inventory across the network.
HAVI Global Solutions turned to Logility Voyager Inventory Optimisation to develop a safety stock plan to identify where and when inventory should be placed. The impact of this initial implementation saw an inventory reduction between 20 to 30 per cent in finished goods alone, far exceeding initial expectations, as well as a decrease of 5 to 13 days of supply and a 2 per cent improvement in truckload utilisation.
Figure 1. The benefits of S&OP are undeniable and companies are focused on three main areas to measure success: Forecast Accuracy, Complete Order Fill Rate and Inventory Turns.
Cost and service naturally compete for attention. Balancing them defines the effectiveness of your supply chain.
Developments in S&OP and MEIO have made dramatic improvements for many companies, saving millions, enabling growth, driving improved service levels, and establishing a competitive advantage. Don’t be left behind, create the right balance and leave the competition trying to figure out how you moved and improved so fast.
Chad Eschinger and Tim Payne, Forecast: Sales and Operations Planning, 2010-2015 (Gartner, 12, September 2011), 3.
1
About the author
Figure 2. Multi-echelon inventory optimisation (MEIO) enables companies to select the optimum location of inventory to provide the greatest balance between service levels and inventory investment.
Karin L. Bursa is vice president of marketing at Logility, a provider of collaborative supply chain management solutions. Ms. Bursa has 25 years of experience in the development, support and marketing of software solutions to improve and automate enterprise-wide operations.
26
MANUFACTURING &LOGISTICS
IT October 2011
www.logisticsit.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52