The Company
- World’s largest winemaker
The Challenge
- Determining the ideal inventory based on existing supply chain parameters and current demand
Methodology
A rigorous interview, data collection, modelling and testing model was implemented as follows:
- Collect all data in all existing systems
- Structure over 1,500 active SKUs by category and other sub categories that are available within the systems
- Link Parent SKUs to Child SKUs & determine lead times for each SKU
- Collect commercial and financial sales forecast & align numbers
- Collect Forecast Accuracy (MAPE) by Category by region; determine schedule attainment by plant by category
- Confirm parameters to use for safety stock modeling
- Propose and align on best suited statistical model enabling ideal inventory
- Build model and deliver inventory ($ and volume) by month
- Optimize model to allow for changes in input such as schedule attainment, forecast accuracy and customer service level by category by region and deliver inventory & production ($ and volume)
- Data & Report validation – Testing
- Compare model forecaster ending inventory actual inventory
Results
- A $30MM opportunity was identified in inventory while maintaining the current service levels
