SCALA CASE STUDY
Demand Driven MRP Implementation
Major Drinks Manufacturer
Background & Brief
This major branded drinks manufacturer wished to achieve industry leading service levels but was struggling with over and under stocking issues and the constant need for re-prioritising production schedules. Following a Demand Driven Conference with SCALA and the Demand Driven Institute the client asked SCALA to assess their whole approach to inventory management
Project Approach
The SCALA methodology comprised :-
Understanding of Business and Initial Assessment of the applicability of Demand Driven MRP
Simulation and Quantification across an agreed representative number of SKUs over a one year period
Workshops with client to ensure full understanding of the system and adjustments to processes and organisation
Pilot scheme for six months
Full Roll Out of System
Benefits & Results
The project delivered the following:
Alignment of Inventory with Demand
Significant Service level enhancement with a 40% reduction in Inventory levels
Avoidance of the need for continuous ‘Fire Fighting’ in production schedules
Final Outcome
A delighted customer with further joint developments into shipping