PROBLEM STATEMENT
The Logistics (Supply Chain Planning) department at a $30b consumer products manufacturer was given extensive inventory reduction goals. A perceived problem was with planning technology, all homegrown and believed to be inadequate for master planning. While able to perform simple inventory management functions, the homegrown applications provided little ability to evaluate costs and trade-offs related to various supply chain decisions a planner might want to evaluate. Additionally, inventory and master planning roles widely dispersed throughout the company, leading to little communication and disparate processes across divisions that would benefit from working more closely to achieve shared goals.

APPROACH
Spinnaker resources conducted a 7-week assessment that evaluated the processes, metrics, technologies, organizational structure, and business policies across all areas of the supply chain. This analysis evaluated the current state of the client’s supply chain and benchmarked performance against industry peers and best-in-class companies. The final step in the supply chain assessment involved developing a Future State supply chain roadmap that prioritized different improvement options based on their expected short and long-term business value.

Following the assessment, a vendor selection process was started and a large change management  initiative was set in place to address the issues associated with organizational and job description changes for 250+ planners.

RESULTS
The client chose an Advanced Planning and Scheduling solution from a tier-one software vendor and is currently implementing new demand and supply planning solutions. The project will result in an estimated staff reduction of 30% and inventory reductions of greater than $100m.