Implementation of a new sales and operating planning (S&OP) process resulted in improved service and a 40% reduction in inventory holdings for a global supplier of engines and transmissions

As a result of substantial revenue growth inventories in the supply chain were building and risk in relation to slow-moving and obsolete stock increasing.

Assessment of current inventory planning highlighted a disconnect in relation to responsibilities for sales and operations planning, disparate processes and a misalignment of systems supporting demand forecasting, requirements planning and procurement.

Once business requirements were understood Logiworx designed and implemented a new sales & operations planning process. Responsibilities for the various activities within the S&OP process were clearly defined and systems realigned to support the new processes and organisation. Logiworx worked over a 3 month period to implement and embed the new S&OP process.

The client was able to realise a reduction in inventories of 40% while improving levels of customer service with levels of inventory write-downs substantially reduced. Stock turns increased from 2.9 to 5.4. The resulting reduction in working capital was put towards growing revenues by 74%