CHALLENGE
As a global free market producer, our client has long struggled to balance its long-term and expensive production with the fast-moving and volatile nature of the market due to credit, federal tax and incentive changes.
There are many important factors that cause conflicts in short and medium planning and cause serious difficulties throughout the functioning of the supply chain. These include intense competition for market share from emerging competitors; increase the impact of e-commerce sales; intensive business negotiations and distribution with customers on the floor; large volumes of raw materials, equipment cost and luxury goods; and the big thing is the number of new products released each year in each category.
APPROACH
Together with companies we have developed a new method for business planning and decision making to teach short working. This includes efforts to improve demand and operational planning.
We improve the accuracy of demand planning by developing a system that combines (1) current sales and printed sales data, (2) foreign market forecast, and (3) law and strategy. Enhancement through risk estimation and planning in planning work, analysis of inventory rules, and tools and capabilities in inventory management and cost simulation reduce costs, provide short-term flexibility, and improve supply chain resilience.
RESULTS
The new integrated planning system combines the most important business processes, underlying business data and operational capabilities to achieve maximum accuracy in the medium term and optimal in the short term.
It has become the company’s most important decision-making role, enabling the company to exceed annual revenue and product targets, leading to business disruption and supply chain resilience during the COVID-19 crisis.
CHALLENGE
Our client, a Consumer Electronics manufacturer, was approaching a high seasonal peak, the FIFA World Cup. Despite good recent commercial and market results, there were concerns regarding the Supply Chain’s capacity to deliver product availability on time to match retailers best sell-in dates.
The challenge was to synchronize a long lead-time supply chain (combining imported raw materials from China, assembly lines in the North region of Brazil and a demand concentration in the southeast) with retailers sell-in dates, which were 1 to 2 months prior to the beginning of the World Cup. Integration was hired for the interim management and took over the Planning, Order to Cash, Warehousing and Transportation processes.
APPROACH
Our first task was to prioritize all top sellers of televisions and prioritize raw material production and shipment from abroad to enable full capacity assembling and seasonality inventory build as soon as possible. To do that, a strong alignment with commercial team was required to understand the top SKUs, commercial priorities and best sell-in dates for each client.
This started a comprehensive reverse planning process, including sourcing, warehousing, factories and distribution planning to ensure all materials and finished goods would be available on time. We were able to book all transportation capacity in advance ensuring that the inventory would be distributed to the southeast prior to demand and before competition, with satisfactory costs.
RESULT
This moment was crucial for the business and essential to gain market and floor share over competition. The combination of these strategies enabled the commercial team to command a strong negotiating position with all clients, delivering the desired floor share and ultimately a historical revenue target achievement
