Lifecycle forecasting, inventory management thru PO creation
A sophisticated consumer electronics manufacturer was struggling to forecast a significant portfolio of long lead times and short product lifecycle items. Excess inventory and stockouts were rampant across platforms. Unpredictable growth combined with high seasonalities further complicated inventory management. Revenue targets were missed and growth was difficult to support. The P2E team worked with the client’s management and planning teams to understand the fundamantal drivers of business (macro & micro) and created a custom adaptive algorithm that substantially improved forecast accuracy. Streamlined planning process made the transition painless. Customized and tailored forecasting algorithm was the key to success.
- 22% reduction in inventory on average in the first year
- Improved on time ship performance from under 65% to over 85%
- Complete visibility to all inbound inventory and demand allowed forward allocation
- A 30 – 40% reduction in personnel time on mundane activities and the ability to cross train among peers in the team