Improve Forecasting & Inventory Levels Using Existing Software (Volpi)

Helped Volpi use their existing forecasting software (Demand Solutions) and MRP (Great Plaines) to create robust sales and operations planning process:

  • Used Multi-Criteria Inventory Classification (MCIC) to create A+, A, B, C and F SKU rankings and upload to MRP system
  • Researched Demand Solutions capabilities and settings to optimize forecast configuration for different types of finished goods (steady demand, trending, intermittent demand, seasonal)
  • Created process for Sales Reps to work with customers to adjust forecast by SKU by location and upload back into MRP
  • Used MRP to set optimal target inventory levels and recommended weekly production plan

Results

Created business process to use all of the existing software systems’ capabilities to set inventory levels and production schedules, reducing unnecessary manual processes and increasing in-stock and fill rate on customer orders.

Improve Forecasting and Inventory using Optimal Velocity (Sundberg)

Augmented existing ERP system with inventory-optimization-as-a-service (Optimal Velocity) to update reorder points and reorder quantities every month

  • Educated purchasing and inventory team on forecasting, planning and inventory management models and methods
  • Facilitated twice-a-year Multi-Criteria Inventory Classification (MCIC) to update A+, A, B, C and F SKU rankings 
  • Update reorder points and reorder quantities based on optimization model that creates the most accurate forecast by SKU and optimizes safety stock to maximize in-stock rate within inventory investment constraints
  • Support Supply Chain Manager with additional analytics of vendor leadtimes, new items and SKU rationalization

Results

Managed inventory down from $14.1 million to $12.5 million while increasing in-stock rate from 87% to 91%

Supply and Demand Planning Organization Transformation (Horizon Hobby)

Facilitated the organizational transformation to split the purchasing department into two functional teams: demand planners and production planners while developing and implementing a Demand, Supply and Operations Planning process

  • Leveraged lean process improvement tools to split the legacy procurement processes into efficient and separate demand planning processes and production planning processes
  • Eliminated the manual “group think” forecasting process and enabled the consistent use of the forecasting software (Logility) to create improved data driven forecastin
  • Developed a DSOP (Demand, Supply and Operations Planning) process to align the organization and enable a balancing of supply and demand on a monthly cadence

Results

Two separate procurement groups that more effectively focus on distinct functions: demand planning and production planning.  A clear business process to align the organization on the purchase and inventory plan and proactively understand and address supply disruptions especially given post COVID supply chain and forecasting uncertainty