“Once we began seeing favorable impacts to our working capital, we knew the system could support our business worldwide.” –Marilyn Anderson, Vice President of global planning, logistics, and customer service, Diversey
Demand planning project cuts inventory, leads to speedy ROI.
Until recently, Diversey Inc. operated a global supply chain that was siloed and utilized different processes and technologies in various regions. That became a problem when the recession hit and the company struggled to understand demand and reduce spending on inventory.
Diversey decided it needed visibility across its global operations while also reducing working capital, improving customer service, and standardizing its supply chain planning to synchronize supply and demand globally. Diversey implemented Logility Voyager Solutions. With better information, supply and demand planners are now making decisions that meet customer demand more cost-effectively while improving inventory management. As adoption of Logility Voyager Solutions expands across Diversey’s North America business, the company is seeing immediate and positive results.
“Once we began seeing favorable impacts to our working capital, we knew the system had the capability to support our business worldwide,” says Marilyn Anderson, Diversey’s vice president of global planning, logistics, and customer service, and leader of a global planning council that was created to identify the potential benefits of adopting a company-wide planning platform and standardized best practices.
Diversey’s Demand Planning project is improving the company’s supply chain visibility by:
- Providing accurate data in real time to enable decision-making upstream and downstream
- Centralizing the planning function
- Standardizing supply and demand planning processes, thus allowing managers to see sales and operations planning data and identify gaps and vulnerabilities in forecasting
- Setting the foundation for future integration of systems, capabilities, and processes
The project is allowing Diversey to better plan and execute new product launches, tailor inventory policies to product categories, and make investments to address changes in market demand. By responding more quickly to market changes, the company is strengthening its ability to win business from new and existing customers. Better inventory knowledge is also allowing Diversey to pull underperformering SKUs, devote resources to high-demand products, reduce safety stock, and automate the process used to compute triggers for an electronic Kanban for production schedules and replenishments.
The project’s return on investment, initially projected to occur in two years, was achieved in less than one year. As a result, the project is expanding to Europe and will roll out to Africa and the Middle East in 2011-2012.