How customer service levels were improved in a strongly cyclical business

Background

• Hozelock were a mature MRP user with an established system.
• Lean/agile manufacturing techniques were established but the service levels still needed improvement.
• Forecast was owned by the sales function, the quality was unreliable with little focus on manufacturing planning.
• The planners were using arbitrary parameters policies and did not believe the forecast from sales.
• Supply / demand planning was not fully synchronised with significant manual progressing activities.

Approach

• The As-Is business processes was mapped and breakages identified;

1. The safety stock policies were causing visibility and capacity issues.
2. MRP cycle alignment to customer demand cycles was evaluated & key weaknesses identified.
3. MRP seasonal planning process weaknesses were identified and understood.

• A detailed analysis of seasonal demand patterns based on 3-years history helped balance the distribution of the safety stocks.
• A re-evaluation of safety stock techniques using k-curve methodology improves visibility and capacity utilisation.
• The development and implementation of a new monthly stock planning process improved the overall stock effectiveness.
• Forecast ownership moved to operations with more focus on quality and balancing customer demands with manufacturing.

Summary of benefits to date

• Significant and sustained reduction in lost business.
• Improved visibility of demand in the seasonal cycle resulting in better utilisation of stock and improved capacity planning.
• Continuous evaluation & adjustment of safety stock parameters to minimise end of season stocks.
• Higher MRP compliance which means that the business can focus on detail manual planning of the "A" Class stock parts.
• A believable forecast with improved information flow between Hozelock and key customers.
• A continuous improvement philosophy in the supply / demand planning processes.

Hozelock: Winner of Manufacturer of the Year Award 2009

Improving service levels to customers and improving the seasonal planning process - an example from the demanding DIY retail sector.

Managing The Leap: Building a Brand Into a Company - KMI King of Shaves

How do successful companies make the leap from start-up to SME?

Detailed business process analysis of the planning, manufacturing and warehouse operations.

The project took a critical look at inventory at a key point in the final assembly process of a major automotive sub-assembly.

The project developed new business processes and improvements in raw material logistics.