Global Manufacturing Company: Demand Optimization & Production Supply Planning
Business Challenges
A manufacturing affiliate of a global fast-forward fashion and retail company recognized that their demand planning, merchandising, and allocation processes were inefficient. The company also realized that it had no visibility demand and could not adequately produce an accurate production plan. Furthermore, the current processes were inefficient and lead to numerous changeovers and components liabilities during the year, thus increasing manufacturing and production costs.
Our Approach
We performed a supply chain assessment around the forecasting, demand planning, inventory planning, and production planning business processes, and the current legacy applications. Once that was completed, we used a collaborative approach to develop the future state model using key business processes and incorporating a nimble model to allow the business to address market changes.
What We Accomplished
We developed and operationalized the supply planning process to support pre-season/in-season activities, production, and replenishment activities with external suppliers. We also defined key business processes for planners (Operations/Materials) by integrating forecasting, demand planning, consensus, and allocation processes to create a forward looking production plan, while leveraging Manugistics and SAP MRP applications. Lastly, we created business processes that addressed demand planning within planning time fences and business exceptions. The output of these processes provided data inputs for RCCP, production planning, scheduling, supplier planning, and S&OP for each sub brand.