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Remy International, Inc.

Industry: Service/Aftermarket Parts

"We've started the budgeting process for next year, and we're actually building the foundation for the financial plan using Logility," Carl Flatley, director of supply chain and inventory management for Remy International, notes. "All of the pricing is loaded in the system, and we have perfect links between units and dollars at all levels of the demand pyramid."

Company

A billion dollar company with over 6,000 employees serving more than 3,500 customers, Remy is North America's largest producer of starters and alternators to the automotive industry.

Problem

As a re-manufacturer, Remy needed a way to manage demand across multiple channels through improved forecasting of both sales and reverse logistics; optimize inventory across its supply chains; and integrate reverse logistics into its production planning process.

Solution

Logility Voyager Solutions™ helped Remy International achieve a one-number plan with gross sales units fully integrated with net sales dollars. Remy now has complete visibility across its entire supply chain, including the ability to model new business and see the immediate impact on operations. "After just six months, Remy's results are impressive," said Carl Flatley, director of supply chain and inventory management for Remy International. "Remy's finished goods inventory is down 17%; service levels have risen from 97.8% to 99.6%; and the finished goods mean absolute forecast error has dropped from 20% to 7%."

Bottom Line

Reduced finished goods inventory by 17%
Implemented Logility Voyager Demand Planning in less than 40 days
Improved service level from 97.8% to 99.6%
Reduced absolute finished goods forecast error from 20% to 7%
Achieved reverse logistics core returns error of less than 5%
Aligned manufacturing with consumer demand
Gained visibility across global supply chain
Can now model and simulate impact of new business
Achieved consensus to a one-number plan
Implemented new S&OP process

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