Challenge:


Our client had an overall objective of improving management of MRP Based Planning Process and Inventory, by educating and equipping the Inventory planners.

There were nearly 80,000 planned materials at 90 distribution centres, more than 800 MRP profiles and 40 -50 planning scenarios.

A structured method was needed to achieve quick improvements and prioritise a detailed review.
 

Solution for the client:

A custom built diagnostic tool has been developed, which enables identification of problems with Planning scenarios, and quick wins such as inventory reduction and process improvements.

It utilises two sets of alerts to identify errors, inconsistencies and opportunities in the planning process, on the SAP platform. The alerts also enable regular review of the Planning setup to ensure the improvements are sustainable.

Focus areas were not only to improve planning capability and skills, but also to address key business issues around Availability, Stock Turns and Forecasting.
A Pilot at one site was completed in 4 weeks with an immediate reduction of the inventory of the order of quarter of a million dollars.

Subsequently the solution has been rolled out across the business to 90 distribution sites and many quick wins have been reported.
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