“[Enterasys] developed an S&OP process and technology infrastructure to support global collaboration and drive realtime executive-level decision-making.” —Jack Lyon, VP of operations, Enterasys
A sales and operations planning overhaul enables the network-products maker to improve forecast accuracy to 82%
Before launching its Executive Sales and Operations Planning (S&OP) project, Enterasys, a maker of network infrastructure and security products, had an ineffcient planning process that hurt its ability to respond to fluctuations in customer demand. Sales forecasts often didn’t match production plans and vice versa. Safety stock levels were high, obsolete inventory burned cash, expediting costs cut into margins, and customer service suffered.
Enterasys knew it needed a complete makeover to drive collaboration, improve forecasting accuracy, and reduce the cost of sales forecasting and production errors. What it decided on included a best-in-class executive S&OP process, and an integrated set of IT tools including an S&OP automation product provided by Steelwedge Software.
The Executive S&OP project’s primary objectives were to improve customer satisfaction and profi tability. With the goal of achieving preferred-vendor status with as many key customers as possible, Enterasys planned to enhance its order-to-deliver times and fi ll rates while improving its own revenue and margin. By integrating financial, supply chain, and forecasting activities across the globe, Enterasys has successfully increased forecast predictability, aligned demand and supply plans internally and externally, improved customer satisfaction, and reduced cash spend caused by forecasting error.
The S&OP project connects Enterasys’ internal departments including the executive team, sales, product management, supply chain, and finance, as well as suppliers. With the Steelwedge platform, the process is fully automated with workflow and alerts, linking the ERP and CRM systems, which were previously not integrated. Through real-time data integration and event-driven alerts, Enterasys’ planners can monitor demand and supply on a daily basis and respond immediately to changes in forecasts.
As a result of the Executive S&OP project, Enterasys has seen forecast accuracy improve from 56% to 82%, and online delivery performance improve from 80% to 97%. And its total supply chain management cost and order fulfillment lead time have drastically improved.
“[Enterasys] developed an S&OP process and technology infrastructure to support global collaboration and drive real-time executive-level decision-making, regarding critical supply and demand issues,” says Jack Lyon, VP of operations. “This award validates the Enterasys supply chain continuous-improvement initiatives focused on customer satisfaction, as we live up to our mantra, ‘There is nothing more important than our customers.’”