Our client is one of the largest distributors of replacement truck and trailer parts in North America. With 250 branches nationwide and multiple business lines, they maintain relationships with over 1,000 unique vendors. In a recent two-phased project, our client turned to Plantensive to help enhance their existing dynamic deployment model, aggregate their multiple location orders, and increase their responsiveness to customer demand by forecasting additional replenishments at specific distribution centers. Phase two of the project was needed to adjust our client’s existing Order Optimization capabilities to aggregate multiple Distribution Center orders up to a single global vendor order to meet minimum order quantities without manual planner aggregation and intervention.
accuracy issues. The project lasted 6 months using the JDA PlanNow methodology. Our client had planned originally with the use of Excel spreadsheets to determine their pre-season and in-season buys. They used Enterprise Planning to standardize their business process and to be able to appropriately plan by each channel of their business along with a focus on active SKU level planning. The client’s planners needed a controlled yearly and monthly snapshot of their SKU level forecasts in order to measure forecast accuracy more effectively. The current calculation for forecasted inventory did not allow for planners to address product with Minimum Presentation Quantities (MPQ) and Safety Stock. Also, the allocators did not have visibility to the In-Stock percent of the product when reviewing and prioritizing their Worklist lines.
Key Project Highlights
- Key modules- JDA Dynamic Deployment and Order Optimization
- Improved ability to be more reactive to demand signals, improve service levels and exhaust all excess inventory across locations before ordering new vendor direct product
- Through use of a new virtual location, DC distribution demand was aggregated into a single location and referenced newly revised ‘global MOQ’ requirements to place a single order at the vendor for any item procured from them.
- Push Logic was implemented to ensure that no product was lost in the pass through from Vendor to Virtual location to the final DC destinations.
- Our client gained better insight into realizing more exact meeting of vendor MOQs (with less false rounding to meet minimum quantities) and a streamlined purchase order process –all with near zero intervention from planners, saving massive resource usage which can now spent on more valuable tasks. This capability was never available to them in the past.