Multi-National Olive Oil Company
This business improved its product availability while reducing inventory and costs
IntroductionThis olive oil producer operates a truly global supply chain across more than 100 countries. The company commercializes 4,000 finished products, requiring more than 10,000 components for their manufacture. 75% of the company's employees do supply chain tasks.
ResultsIncrease product availability from 97% to 99% Improved delivery service quality from less than 91% to nearly 96% Reduced average stock days per product lines Reduced transportation costs with fewer partial deliveries and less premium freight
Due to its size and complexity, the company needed a more strategic, global supply chain solution in order to obtain and improve its global logistics, financial and organizational objectives. The supply chain management team set had two fundamental goals. First, they wanted to offer their clients the highest possible service level and raise product availability. Second, they wanted to achieve optimum stock levels and reduce their inventory.
To achieve this, the team knew they had to bring all their brands into the project and completely integrate the IT systems of acquired companies. They wanted to create an extended supply chain that included all the processes between orders and collections. With an expansive network in which each distribution center could be supplied from different manufacturing centers, they needed a solution that could create a cohesive planning environment, integrating all aspects of demand and supply planning, logistics, distribution, customer service, purchasing, and cost control.
The company decided to implement ToolsGroup’s Service Optimizer 99+ (SO99+). It first rolled out the system within the Spanish market before moving on to international markets. By implementing SO99’s end-to-end solution, the company had a solution that could handle its forecasting, inventory optimization and replenishment management and integrate these processes into the management of its global distribution network.
With the implementation of SO99+, the company began enjoying the benefits of an automated solution that simplified systems and reduced administrative work. Product availability increased from 97% to 99% and delivery service quality improved from less than 91% to nearly 96%. Both the stock of finished goods in Europe and the average stock days per product lines were reduced, limiting product obsolescence. The company lowered its transportation cost since it now had fewer partial deliveries and less premium freight, and improved its industrial performance.↓ Download PDF