Implementing Supply Chain Planning Solutions to Improve the Forecasting Accuracy by 20% and Reduce the Number of Warehouses for a Food Company in the UK
Food Industry Overview The food industry is the UK's largest manufacturing sector. It employs over 400,000 people and plays a prominent role in the economy. However, the market remains uncertain for companies. Brexit could have significant implications for the growth of the sector, thereby negatively impacting the supply chain. Although the government’s position has been [...]
Food Industry Overview
The food industry is the UK’s largest manufacturing sector. It employs over 400,000 people and plays a prominent role in the economy. However, the market remains uncertain for companies. Brexit could have significant implications for the growth of the sector, thereby negatively impacting the supply chain. Although the government’s position has been belatedly accepted, some transitionary arrangements will be needed by companies to prevent complete chaos.
Business Challenges Faced
Our client, one of the leading food companies in the UK found that their production costs were inflating end-to-end supply chain expenditure despite managing distribution operations well. When the leadership analyzed production cost issues, they found that the distribution network was least responsible for the issue. As a result, the client looked at how they can improve their supply chain planning to minimize some of the production costs. With SpendEdge’s supply chain planning solutions they wanted to
- Reorganize the supply chain.
- Take advantage of synergies and economies of scale.
- Improve the approach to demand forecasting.
Having a robust supply chain planning process is crucial for companies to manage distribution operations efficiently in the wake of Brexit. Request a proposal to access our supply chain planning for FREE now!
Our Research Approach
To effectively address the client’s requirements, the experts at SpendEdge developed an effective supply chain planning strategy. They began by creating a demand plan that could take past sales and future customer forecasts. They connected siloed supply chain planning process to sales, operations, and financial planning process. This helped the client to align their short-term operational planning with their wider business planning processes and gain real-time updates into inventory forecasts and supply.
Deploying real-time supply chain planning solutions, enabled the client to create new scenarios and use their resources wisely to optimize profitability. This improved end-to-end visibility across the supply chain and empowered the client to assess changing consumer sentiments. Furthermore, leveraging supply chain solution allowed them to plan with more accuracy and reduce the risk of stock-outs or having too much inventory.
Wondering how you can gain real-time updates to improve inventory forecasts and reduce the risk of stock-outs? Reach out to our experts and reap the benefits of supply chain planning solutions.
SpendEdge’s supply chain planning solution helped the client to improve the forecasting accuracy by 20% and reduce the number of warehouses in the UK from 35 to 15. Moreover, the solution offered reduced the finished goods spoilage by 25%.
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Steps to Improve Supply Chain Planning
- Introduce new ERP systems with Supply Chain Management (SCM) functionality.
- Have a standardized ERP system to increase efficiency while saving time and money.
- Increase internal SCM transparency to reduce unexplained inventory and financial losses.
- Gain accurate and timely data and information to improve decision-making process.
To know more about supply chain planning steps, request for more information from our analysts.