About
This global industrial organization operates in more than 80 nations, focusing on industrial gases for healthcare, environmental, and research purposes.
One of the group’s entities buys and sells components used in medical equipment and gas distribution systems.
Problems
- As part of a global Supply Chain optimization project, and faced with high variability in demand and suppliers, a low service rate, and little synergy between subsidiaries, this entity wanted to launch a project to implement DDMRP.
- The main objectives were to increase the customer service rate and optimize inventory levels, while controlling the sometimes very low supplier reliability and variable demand.
- This entity has therefore decided to run a pilot project initially, with a view to rolling out the methodology to all references if the results are conclusive.
- The scope of the pilot focused on 49 items out of 1,200 managed in stock in a central warehouse by this entity, representing around 20% of total stock by value.
- References were chosen according to their estimated potential impact (items with high stock-outs, high variability, low supplier reliability, etc.).
Citwell's mission
- Demand Driven training
- Certifying DDPP training.
- Serious-Game DDBRIX.
- Pilot framing and DDMRP design
- Definition of scope.
- Data collection and process definition.
- Buffers positioning and sizing.
- Drafting operating procedures.
- Pilot start-up and follow-up
- Enhancing team skills.
- Implementation of a Demand Driven routine (visual alerts, analysis, collaboration).
- Monitoring of pilot indicators and progress points.
- Deployment support
- Risk identification and recommendations.
- Change management support.
- Business cases.
- Demand Driven training
Results
- Service rate increased by 9 points, from 87% to 96%.
- Inventory value down 15% in 3 months, with a target of -29% by the end of 2018.
- Inventory coverage reduced by 14 days.
- Procurement transformation: visual, prioritized and more efficient management.
- Initiate upstream and downstream communication with suppliers and customers as part of the Demand Driven approach.
- Progressive full roll-out until October.
