Global Energy Company
Significantly improved service while reducing inventory.
This global energy company wanted to start a project to improve product service levels and knew it would not be easy because they wanted a flexible solution that did not interfere with the systems the company was already using.
ResultsImproved service level from 81% up to 97% Reduced inventory by 16%
SolutionsDemand Forecasting & Planning Inventory Optimization Replenishment
Project & Objectives
The company was seeking to achieve customer service excellence (measured in order line fill rate). In addition, they wanted to obtain:
- Inventory reductions
- Efficient replenishment of their secondary warehouses from the central warehouse.
- Precise input for manufacturing planning, MPS and MRP.
SO99+ was introduced rapidly, achieving integration and co-functioning of several systems.
The phases were:
- Quantitative analysis of the baseline situation, carrying out empirical tests and quantitatively analyzing the potential for desired improvements and savings.
- Alignment of SO99+’s parameters with the other manufacturing and materials management systems and systems interfacing.
- Ongoing operation of SO99+.
The planning team is now able to optimize more than 21,000 SKU-Locations in Lubricants and Paraffins divisions. One of the characteristics they most value is SO99+’s flexibility, which made integration with SAP and their other systems very straightforward, and also allows them to easily add new lines of business.
Results & Benefits
Having implemented the project with ToolsGroup, the company has achieved the following results:
- Service level improves from 81% up to 97%
- Reduction inventory by 16%
In addition, SO99+ enabled them to constantly maintain an optimal service policy, providing them with a reliable estimate of the cost required to fulfill any specified global service objective.↓ Download PDF