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E-2-E Supply Chain Optimization for a Large CPG Multi-National Co in India

E-2-E Supply Chain Optimization for a Large CPG Multi-National Co in India

The Customer

E@Ec | Algorhythm Tech
The customer is a Global CPG giant, a leading producer of health, hygiene and nutrition products. Their India unit wanted to optimize its Supply Chain. They had over 20 large brands, 500+ SKUs, approx. 30 depots, 3 own plants and around a dozen third party suppliers.

The Problem

Optimize the entire Supply Chain incl Inventories and Supply Planning to Logistic Planning to achieve the following goals :
P1 | Algorhythm Tech

Reduce Inventory by 15%.

P2 | Algorhythm Tech

Improve Service Levels by 5%,

P3 | Algorhythm Tech

Reduce unplanned inter-depot transfers by 30%

P4 | Algorhythm Tech

Reduce changeovers by 20% to maximize productivity

The Complexity

C1 | Algorhythm Tech

Brands with different seasonal behaviors

C2 | Algorhythm Tech

SKUs

C3 | Algorhythm Tech

Customer facing Depots

C4 | Algorhythm Tech

Own and 3rd Party Production Units

Challenges and Requirements

CR | Algorhythm Tech

Solution

SOL | Algorhythm Tech

Inventory Planner

  • Setting up the right Service Level Measurements based on stock availability
  • Hub Spoke Model for B & C items to pool risk against Demand Uncertainty
  • Identification of the key inventory drivers like production lots, demand variability etc. and instituting a continuous improvement process to deliver results
  • Product segmentation, multi-echelon and service level optimization
IP | Algorhythm Tech

Logistics Planner

  1. Partial Replenishment based distribution to account for forecast errors – pull and push combination
  2. Ability to respond quickly to the market scenario by prioritizing dispatches based on actual consumption
  3. Monthly outlook for planners with expected stock arrival dates
  4. Dynamic linkage calculation and dispatch based on stock availability and future production plan
  5. Daily Schedule based on the stock availability and urgent demands
  6. Fair Share to maximize service levels
  7. Truck load building for optimizing the truck mix
LP2 | Algorhythm Tech

Supply Planner

  1. Increase in Production Frequency for all SKUs leading to leaner production
  2. Mid-month Supply Planning based on forecast revisions
  3. Demand Prioritization based on the actual sales
  4. Driven by Organizational Objectives. Cost optimization based allocation of CFA-SKU demand
  5. Equipment Level day wise sequencing based on delivery dates
  6. Maximization of Supply Frequency based on available capacity
  7. Ability to run constrained and unconstrained supply plans. Ability to run multiple simulations
SP2 | Algorhythm Tech

Result

result2 | Algorhythm Tech

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