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End-to-End Supply Chain Planning for a Leading Lubricant Manufacturer

End-to-End Supply Chain Planning for a Leading Lubricant Manufacturer

The Customer

L1 | Algorhythm Tech

The Customer is a leading  Industrial Oil Manufacturer in India. They have one plant from where they supply Finished Goods to multiple distribution centres and to several direct Customers. Business is a complex mix of Make to Stock and Make to Order Products.

The Problem

The customer was scouting for an end to end Supply Chain Planning platform from improving Forecast Accuracy to improving Supply and Dispatch reliability to improving visibility

4PIC1 | Algorhythm Tech
4PIC2 | Algorhythm Tech
4PIC3 | Algorhythm Tech
4PIC4 | Algorhythm Tech

Challenges

There were 3000+ FG SKU’s comprising of Speciality Oils and Lubricants, which serves OEM’s and After Market for  India as well as Export requirements. They were grappling with poor demand planning leading to increased inventories and reduced service levels across distributors spread across India.

L5 | Algorhythm Tech

Existing Model

L6 | Algorhythm Tech

Proposed Model

L7 | Algorhythm Tech

Solutions

L8 | Algorhythm Tech

Demand Planner

    • rhythm’s state-of-the-art AI / ML based forecasting engine was used to generate the forecast.
    • Multiple Statistical Forecasting Techniques were used to address Seasonality, Trend and Cyclic Behaviour. System selected the best technique for each SKU at each Location and Cleansed historical data to remove errors, outliers etc.
    • Forecasting model was able to adapt to the changed scenarios of Before and After COVID market situations generate accurate forecast
L9.1 | Algorhythm Tech
L9.2 | Algorhythm Tech

Inventory Planner

L10 | Algorhythm Tech

♦ Norms are generated for RM,PM and FG level using historical Sales data.

♦ Service Target and Inventory optimized at all depots, Regional hubs, Central Mother hub in form of FG and at Factories in form RM and PM

PM Inventory reduced by 25%

RM Inventory reduced by 20%

FG Inventory reduced by 15%

Reasult

1bb | Algorhythm Tech

12% Improvement in the forecast accuracy

Forecasting process adherence improved significantly along with better visibility of  control over forecast changes

2d | Algorhythm Tech

97% Service Level

Different service levels for different SKU-location combinations improved the existing service level by over 10%

3p | Algorhythm Tech

20% Reduction in current Inventory Level

Recommended Norms will help to reduce the inventory by  over 20% across FG, RM and PM

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