Supply Chain Transformation

Our food industry client was interested in improving and standardizing the production planning and scheduling processes of their $3 billion dollar enterprise. We helped them conceptualize their future state vision and define their roadmap from a de-centralized, non-integrated, non-standard process to a centralized, integrated, and cost optimal one. Client platform: Blue Yonder Demand, Fulfillment, and Strategy

Phase 1 of the transformation addressed the annual operational planning and least cost sourcing process. The existing plant sourcing process was manual, infrequent, non-optimal, and spreadsheet intensive. We designed and implemented a system managed process using Blue Yonder optimization decision support technology. The automated sourcing process balanced overtime labor, inventory carry costs, variable line production costs, transportation costs, and service level and safety stock requirements to provide the optimal least cost sourcing annual plan. We managed the project implementation, the Blue Yonder Strategy model design, configuration, and testing, and all data integration. First year results: over $10 million savings in cost improvements, decreased sourcing decision time frames, and a more effective way to evaluate the cash flow impact of future capital projects.

Phase 2 of the transformation addressed the master production scheduling processes. The client was already utilizing Blue Yonder Fulfillment and had selected Strategy as the optimization engine for the production plan. The project scope included of the complete re-design of all associated business processes. We were asked to assist with all elements of the project. Key elements of our contribution included:

Business requirements definition
Overall solution architecture design
Business process definition and organizational development
Integration design between Fulfillment and Strategy
Blue Yonder Strategy model design, configuration and testing
Integration design with clients external data warehouse and reporting system
End user training and development

Results: the client now leverages a centralized, cost optimized production planning cycled on demand over a 78 week horizon, across all production lines to enable a more precise control of working capital and decreased cycle time for new product launches

SupplyChain LYNX