Industrial and Durables
Business and Inventory Challenges
Industrials and durable manufacturing can be particularly challenging when markets require smaller volumes which translate into large mixes and slower moving products whose demand is highly variable and harder to predict.Yet particularly when sales are made through wholesalers and retailers, a high service level is expected. These big customers move a lot of product and want close integration with their suppliers. They may even require inventory directly managed by suppliers (VMI).
A high service level requirement coupled with a changing inventory mix drives inventory requirements higher, and also increases the risk of obsolescence.
ToolsGroup's Unique Capabilities
In this environment, ToolsGroup has the ability to deliver stable, reliable and very high service levels. We offer a unique capability called "stock mix optimization" that allows companies to create a heterogeneous mix of service levels within a class of products. ToolsGroup customers in this industry are obtaining record service levels, typically in the mid-to high 90s.ToolsGroup solutions also address many of the specific needs of industrial and durables companies such as handling:
- Complex multi-echelon network models
- Rough cut capacity planning
- Vendor Managed Inventory (VMI)
- Product expiration constraints
- Product phase-in/phase-out and sales promotions
Successes
ToolsGroup is successfully deployed at more than 20 Industrial and Durables customers, such as:- Tenaris (Tubular Steel)
- CNH (Industrial and Heavy Equipment)
- Alessi (Household Appliances)
- Hettich International (Household Furnishings)
- And many others