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Case Studies

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Case : Asset Network Maximization

  • Improving demand forecasting accuracy for MNC
  • Excellent resource utilization and optimized production leading to uptick in profitability

Context

The client is a multinational company known for its range of baby care and personal hygiene products.

Challenge

SAP was the enterprise system deployed in the company. Though traditional processes were well-implemented, the focus on manual tasks created a drag on resources. The Planning department was preparing and maintaining plans manually, based on multiple dynamic inputs, leading to gaps in operations. To create and maintain Production, Procurement and Distribution plans, a huge resource bandwidth was being utilized.

Solution

Though accurate demand forecasting was our core focus, we created a versatile solution with many spin-offs: higher revenue growth, better asset utilization, effective cost reduction, and reducing delays in information and material flow.

Key highlights of our solution:

  • As stakeholders are located in different geographical regions and most of them were handling different functions, we suggested web-based architecture with role-based access to functions
  • Sharp and quick algorithms were built to generate automated production, procurement and distribution plans
  • Added data import functionality to minimize data entry efforts
  • To automate the status updates and alerts, system uses static data available for each machine, manufacturing unit, supplier, and distributor
  • Before publishing the plan, one can tweak for additional JIT implementations

Results

  • System is highly appreciated for its huge contribution in terms of effort, time and cost savings
  • Plans are available on the web, so communication gaps and efforts are reduced
  • Very little analysis required to fit the JIT inputs
  • It's very easy to come up with the next 13 weeks' plan which was impossible to achieve with earlier manual techniques
  • P & L became more predictable with fast, errorless and long-term planning

Outcome

Apart from the company's India operations, other global units too benefitted from streamlining and optimizing production& distribution. The aggregate cost savings were to the tune of Rs. _ _ _ _ Crore per annum.