Improving supply order quantities and reducing long-term forecast dependence through a new supply plan

Customer

Known for their award-winning, innovative and high-quality e-bikes. Founded in the Netherlands, our customer is also active in Belgium, Germany, and Austria.

Challenges

  • Manufacturing is outsourced to partners with limited capacity and long lead times.
  • Heavy reliance on long-term forecasting and limited short-term responsiveness.
  • Requiring high working capital with an elevated risk of having stock levels not matching short-term demand.

Solution

  • Long-term supply order commitments on broad product families and short-term order allocation on SKU level.
  • Introduced ABC XYZ methodology to safety stock calculations to ensure optimal inventory management.
  • Exception-based planning allowing planners to focus on SKUs requiring action.
  • Scenario/what-if planning to allow planners to prepare for potential demand volatility and supply disruptions.

Results

Reduced dependence on long-term forecasts and improved short-term reaction times

Improved safety stock management to ensure demand coverage

Strong visualization of exceptions and scenario comparison

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