Ceramic manufacturer & supplier

Company :

Ceramic manufacturer & supplier

Problem statement :

  • Endemic demand-supply mismatch leading to lost sales and frequent crisis management
  • High inventory levels but poor order fill rates (below 75-80% level)
  • Poor coordination among sales, manufacturing, procurement and logistics functions leading to recurrent management intervention
  • Silo culture and turf politics

Solution :

  • End-to-end supply chain planning driven by common objectives of single sales forecast, business priorities and inventory & distribution rules
  • Development of handy excel based sales forecasting tool minimizing systematic errors
  • Creation of production capacity simulator to optimize data/ rule based production planning & scheduling matching market demands
  • Creation of supply chain planning cell in logistics department
  • Establishment of Sales & operation planning process (S&OP) integrating sales, manufacturing, procurement and logistics functions
  • Dashboard and performance management

Benefits :

  • Process clarity with shared yet clear goals and responsibilities driven by integrated process architecture
  • Customized tools for easier planning and coordination based on transparent data and rules-production capacity simulator & forecasting tool
  • Dramatic improvement in sales forecasting accuracy -MAPE reduced to <80% from 230% to 490% level of variances
  • Overall stock reduction of 20 days within 3-monthly cycle
  • Dramatic reduction in demand-supply mismatch, order fill rate jumped to 95% level in 6-months
  • Streamlined process across sales, manufacturing, procurement and logistics. Healthy inter-team relationship & productive collaborations

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