E-2-E Supply Chain Optimization for a Large CPG Multi-National Co in India
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The Customer
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 :
Reduce Inventory by 15%.
Improve Service Levels by 5%,
Reduce unplanned inter-depot transfers by 30%
Reduce changeovers by 20% to maximize productivity
The Complexity
Brands with different seasonal behaviors
SKUs
Customer facing Depots
Own and 3rd Party Production Units
Challenges and Requirements
Solution
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
Logistics Planner
Partial Replenishment based distribution to account for forecast errors – pull and push combination
Ability to respond quickly to the market scenario by prioritizing dispatches based on actual consumption
Monthly outlook for planners with expected stock arrival dates
Dynamic linkage calculation and dispatch based on stock availability and future production plan
Daily Schedule based on the stock availability and urgent demands
Fair Share to maximize service levels
Truck load building for optimizing the truck mix
Supply Planner
Increase in Production Frequency for all SKUs leading to leaner production
Mid-month Supply Planning based on forecast revisions
Demand Prioritization based on the actual sales
Driven by Organizational Objectives. Cost optimization based allocation of CFA-SKU demand
Equipment Level day wise sequencing based on delivery dates
Maximization of Supply Frequency based on available capacity
Ability to run constrained and unconstrained supply plans. Ability to run multiple simulations
Result
