$5B
Annual revenue
13
Sales channels
1,500+
Ship-to locations
85%
User acceptance rate
A global consumer electronics manufacturer with $5B in annual revenue was expanding into omni-channel: 13 sales channels serving 1,500+ ship-to locations. Its organization, processes, and physical network still ran on a classical CPG mindset built for a single channel, and fulfillment performance sat below target.
So the manufacturer partnered with Solvoyo to build a planning platform for production, distribution, and fulfillment. The platform reached an 85% user acceptance rate for demand and finished-goods supply plans, and an integrated S&OP process now replaces siloed planning.
Vertical Silos and Serial Planning Held Omni-Channel Back
The organization, the processes, and the physical network were all still operating with a classical CPG mindset, built around single-channel assumptions.
Three features of how the business ran meant it was not hitting its target fulfillment performance:
- Vertical silos
- Serial planning
- Reactive operations
Building an Omni-Channel Planning Platform for Production, Distribution, and Fulfillment
Solvoyo helped the manufacturer adopt new omni-channel practices: more points of sale, both physical and virtual, and more fulfillment options.
The work also prepared production-distribution-fulfillment planning capabilities for omni-channel differentiation. The platform automated the demand and finished-goods supply plans, along with the fulfillment and transportation plans.
An integrated S&OP process aligned the tactical plans, and a common set of KPIs gave every function the same measures to plan against.
85% User Acceptance Across Demand and Supply Plans
The platform automated planning across production, distribution, and fulfillment, and the organization adopted it at a high acceptance rate. Demand and finished-goods supply plans reached an 85% user acceptance rate.
The other gains:
- Automated fulfillment and transportation plans, also with a high user acceptance rate
- Aligned tactical plans through an integrated S&OP process
- Common KPIs that measure performance across the whole chain as well as within each function
- Higher brand value through higher profitability
What Does This Mean for You?
Omni-channel differentiation needs production, distribution, and fulfillment planning built for the omni-channel model from the start, plus a common set of KPIs that everyone plans against. This manufacturer sold through 13 channels while its organization and processes still assumed one.
If your sales channels have multiplied faster than your planning process, check whether your organization, processes, and physical network still assume a single channel.
About Company
A global consumer electronics manufacturer generating $5B in annual revenue, selling through 13 sales channels to more than 1,500 ship-to locations.
Achievements
85% user acceptance rate across demand and supply plans
Automated fulfillment and transportation plans
Integrated S&OP process replacing siloed planning
Don’t take our word for it
80% of IT tools investment fails if the partners don’t strive to continuously improve and adapt. That is what sets our partnership with Solvoyo apart.
With Solvoyo, we eliminated spreadsheets from the process and simultaneously increased process speed and planner efficiency across all regions.
By rationalizing our North American network, we provided improved service at lower costs through redesigning our network. Our project succeeded in shifting our “inventory-centric” perspective to one of “total-cost optimization.” We have since consolidated our depots in North America, leading to significant infrastructure cost savings as well as a sustained inventory reduction of $5 Million.
Solvoyo’s S&OP platform gives both the regions and the HQ the ability to maintain a supply plan harmonized with demand and inventory investment targets. We now identify supply plan discrepancies proactively. Along the way, we eliminated Excel from the process and simultaneously increased process speed and planner efficiency across the enterprise.
We see rapid changes in demand, and when the inventory is short, we adjust our production plans accordingly. The adjustment requires a lot of manual work, causing suboptimal plans and inefficiencies on the production site. With Solvoyo’s optimized plans, not only do we make easy and smart decisions but also respond to any rapid change at the speed of the market.
