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Intelligent S&OP for a Large Cooler Manufacturer in India

Intelligent S&OP for a Large Cooler Manufacturer in India
SOP 2368818117 1653916334897 | Algorhythm Tech

The Customer


The customer is one of the Leading Consumer Goods manufacturing companies, an Indian Multi-National Company with a presence in over 60 countries. It is the world’s largest manufacturer of air-coolers, with manufacturing at 10 locations & complex business network with Retailer, Distributor & CFAs 

Client1 | Algorhythm Tech

The Problem

 

Customer was planning to streamline its SNOP Process through the following steps :

List 2 2683681305 1653916820387 | Algorhythm Tech

Complexity

Complexity 3 648060495 1653916624394 | Algorhythm Tech

Challenges

SYM 1 | Algorhythm Tech

Hundreds of SKUs in over dozen different categories with seasonal & non-seasonal sales patterns, Multilevel Organization consisting of over few thousand Distributors  & Dealers, over hundred branches, over thirty Zones, nearly a dozen National Heads & six different sales channels Head

SYM 2 | Algorhythm Tech

Different segments of Customers connected through different sales channels. Consolidation & integration of multiple supply chains for demand planning at OEM & CFA levels.

SYM 3 | Algorhythm Tech

High Volatility in the market as demand varied as per seasonal factors, which made it complicated to take a call on Inventory positions at OEM, CFA & distributor levels by considering optimum service levels.

SYM 4 | Algorhythm Tech

Lack of end-to-end visibility in Demand Planning & Inventory Planning and in generating OEM level Production Requirement. Absence of systems limited the organization from dealing with complex supply chain configurations

Requirements

SYM 1 | Algorhythm Tech

Scalable System End to end Planning system that could deal with a large scale problem of forecasting, setting Inventory Norms and generating Production Requirement

SYM 2 | Algorhythm Tech

CollaborationDemand Planning System to enable collaboration amongst various stake holders across different channels, categories and Organizational Hierarchies 

 

SYM 3 | Algorhythm Tech

Accurate Forecast and Optimal Stock Norms Improve Forecast accuracy. Classify SKUs based on Volume, Volatility and set Service Levels based on Market Segments. Optimize Inventory Norms to meet the overall Service Level Requirement with minimum Inventory

SYM 4 | Algorhythm Tech

Long-Term Forecast and Production Requirement Generate long-term Demand Forecast. Generate Production Requirement at Factories based on Forecast and Inventory Levels.

Solution

Scalable System

rhythm Platform

Capable of handling large scale problems with millions of product market combinations

Collaboration

Demand Planner

To enable collaboration amongst stake holders across channels, categories and Organizational Hierarchies.

MIDC | Algorhythm Tech

Accurate Forecast and Optimal Stock Norms

Demand & Inventory Planners

High Forecast Accuracy and Segment wise Optimal Inventory Norms to meet the overall Service Requirement

Long-Term Forecast and Production Requirement

Demand & Supply Planners

To generate long-term Demand Forecast and Production Requirement at Factories

Demand Planner

DP 2 | Algorhythm Tech

Inventory Planner

Steps Copy | Algorhythm Tech
Steps 1 | Algorhythm Tech

Stock to Service Relationship

Generates unique Stock to Service Curve for each product at each location based on Demand Variability, Lead-time, Review Period, Lead-time Variability, Supply Compliance, Production, Distribution Lot-sizes, etc

Steps 2 | Algorhythm Tech

Multi-Echelon Inventory Optimization

Optimizes Inventory across multiple echelons and identifies the right echelon for inventory deployment for each product

Steps 3 | Algorhythm Tech

Multi-Product Inventory Optimization

Sets the right service level for each Product at each location to meet the overall Service requirement. Optimally apportions the inventory budget. Automatically sets lower service targets for high volatile items

Steps 4 | Algorhythm Tech

Inventory at different Nodes

The inventory planner suggests the days of supply & converts the demand in Norm’s quantity based on the calculation, it suggests the right inventory at different nodes in the supply chain. We suggested inventory at the CFA level, which helped the OEM to plan accordingly.

Supply Planner

machine | Algorhythm Tech

Supply Planner helps in monthly and weekly dispatch requirement planning considering the monthly demand, available inventory, pending dispatch, In-transit, and safety stock norms. it suggests bucket wise Net Requirement for each SKU at CFA and OEM locations

Results

1bb | Algorhythm Tech

10% Improvement in the forecast accuracy

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

2d | Algorhythm Tech

95% Service Level

Service Level, different service levels for different SKU-location combinations improve the existing service level by approximately 7%

3p | Algorhythm Tech

18% Reduction in current Inventory Level 

Recommended Norms will help to reduce the inventory by approx.18%

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