Success story

Glen Raven weaves a dynamic supply chain.

Logility helped this performance fabrics manufacturer transform its digital supply chain process including demand, inventory and supply planning.

Challenges

Glen Raven is a global provider of innovative fabric-based solutions for applications in the awning, marine, furniture, flooring, protective, military and geosynthetic markets. 

Glen Raven needed to grow top line revenue efficiently, increasing service levels to customers without increasing inventories. 

Ineffective planning

As the company’s volume grew, manual planning methods became cumbersome and spreadsheets were no longer viable.

Broadening assortment

Complexities increased as the company offered a wider assortment, increasing SKU counts at every level in the Bill of Materials.

Managing inventory

In a business model that is largely make-to-stock, increasing SKU counts at every level of the BOM has huge implications on effectively managing inventory.

Maintaining service and quality

A complex supply chain consisting of global suppliers, manufacturers and customers across several unique industries meant Glen Raven had to change its supply chain processes and solutions.

Solutions

Prior to Logility, Glen Raven used multiple planning workflows from different stand-alone applications. A big assumption was that forecasts were feasible from a material availability standpoint. Because several lines of its business share capacity and raw materials, it’s a challenge to manufacture efficiently when peak sales or production cycles overlap. “Individual planners could unknowingly exacerbate the problem by issuing excess production orders or issuing orders earlier, which resulted in the misallocation of valuable capacity or material resources, and negatively impacted service,” explained Ajay Bhardwaj, director of planning at Glen Raven. 

Demand Planning and Optimization

Integrated Business Planning

Manufacturing Planning and Optimization

Inventory Planning and Optimization

Advanced Analytics

We now use Logility to model our entire supply chain including constraining key capacity resources and material availability. Logility gives us the ability to produce plans that are consistent, reliable and feasible,” Bhardwaj added. 

Results

Glen Raven realized significant benefits across the organization following the implementation of Logility. The company now operates on a single plan to facilitate its sales and operations planning (S&OP) process. Forecast accuracy measured by Mean Absolute Percentage Error (MAPE) improved by 50%, while the company continues to experience growth in its business. Additionally, Glen Raven saw further improvements in on-time delivery performance. 

Today, the supply chain team can quickly provide the sales organization with a detailed statistical forecast at multiple planning levels. This visibility allows the sales team to add market intelligence which helps all teams develop a more accurate starting position for the annual business planning process. In addition, Glen Raven now has a monthly standard workflow that helps streamline its supply chain operations. 

With Logility, Glen Raven has reduced inventories, improved service levels and increased sales volume. It has also reduced forecast error by 50%, increased on-time deliveries and created a single, integrated business and operating plan. 

With Logility, we have an integrated planning platform that enables Glen Raven to better serve our customers and grow our business efficiently.

Success story

Farnell synchronizes its supply chain to boost customer service.

Logility helped Farnell achieve the best balance between customer service levels and inventory requirements.

Challenges

Farnell markets and distributes more than 600,000 electronic components and industrial maintenance, repair and operations (MRO) products to 430,000 customers in 36 countries. 

As part of the effort to rebrand four businesses in its marketing and distribution division, Farnell wanted to cross-sell products across its subsidiary businesses and give customers access to a greater array of products from the Farnell company of their choice. With the Farnell initiative, the company needed to be able to deliver a single order from multiple warehouses, support the implementation of new warehouse locations, increase order visibility, improve service and reduce inventory levels. 

Consolidating business groups and brands

Farnell needed to join core functions of the companies but keep the markets, skills and differentiators separate, and honor the unique brand loyalty behind each company.

Strategic inventory placement

The business needed a primary stock location for each product and to be able to ship to any of the brand’s customers anywhere in the world.

Faster order turnaround

Farnell wanted to provide next-day delivery, a big challenge given the more than 140,000 SKUs on its CD catalog.

Solutions

The Logility® Digital Supply Chain Platform enabled Farnell to boost service levels without a corresponding rise in inventory levels and made it possible for the company to reduce overall inventories significantly at its Leeds, U.K., warehouse. Logility enabled Farnell to integrate supply chain and logistics functions across subsidiary operations. 

Demand Planning and Optimization

Inventory Planning and Optimization

Supply Planning and Optimization

“A new warehouse in Liège, Belgium provided additional space to better serve the growing European market, along with the existing Leeds  warehouse,” explained Jon Bates, head of supply chain for Farnell. 

For example, to deliver on the promise of a unified global brand, Farnell had to change its product catalogs and give customers access to a broader array of products from a single Farnell company. Formerly, customers had to place separate orders to each individual Farnell company from separate product catalogs. Now, with Logility, a single catalog contains all products, and customers have access to more than 600,000 products that they can order from a single company. 

By the same token, the company can split a single customer order across multiple warehouses, then seamlessly package and deliver it from multiple locations. Each Farnell brand is now transparent in terms of physical location of inventory. 

“We needed to have a primary stock location for each product and be able to ship to any of the brand’s customers anywhere in the world,” Bates says. “Logility helps us determine where to place inventory more strategically and choose any warehouse to be the point of delivery, minimizing the number of stocking points. Demand forecasts are critical to this process and Logility will enable us to generate accurate forecasts and share valuable global demand information with our key suppliers,” Bates adds. 

Farnell also wanted to be able to provide customers with next-day delivery, which is often a big challenge given the more than 140,000 SKUs on the CD version of its catalog, a heavy mixture of both slow and fast-moving products, and a catalog that continues to grow at the rate of 5,000 to 10,000 SKUs a year. With help from Logility, the company is able to better manage its investment while turning around orders faster than ever before. 

Results

With Logility, Farnell was able to increase customer service levels while reducing inventory by 5%facilitate corporate efforts to cross-sell products across Farnell companies and give customers access to over 400,000 products, as well as drive collaborative partnerships with key suppliers. 

Logility allows us to place inventory more strategically and choose any warehouse to be the point of delivery, minimizing the number of stocking points.

Success story

E.A. Sween Company strengthens customer relationships.

Following a rapid implementation, Logility enabled E.A. Sween to quickly gain visibility across the supply chain to sense and respond more effectively to customer needs and market trends.

Challenges

E.A. Sween Company manufactures and distributes more than 70 million sandwiches a year through wholesale, direct store delivery (DSD) and combined distribution centers (CDC) across the United States. Their brands are known for providing high-quality food for people on the go. 

E.A. Sween had a wealth of data; however, the company was unable to extract meaningful insights from this data. The team identified a need for a solution that was quick to implement, cost-effective, user-friendly and would integrate seamlessly with existing technology to help them turn information into action. 

A need for analytics

E.A. Sween’s existing ERP system recorded millions of transactions each year but was unable to provide a timely, high-level company view needed by management.

Inefficient reporting

Preparing even simple reports in the ERP system was cumbersome and inefficient.

Lack of insight for better decision-making

Management needed a solution that would support quicker decision-making and response to market trends.

Using Supply Chain Analytics to Power The Digital Supply Chain

Solutions

Beyond the eight-month ROI and elimination of IT backlogs, E.A. Sween gained immediate visibility into its entire supply chain, from manufacturing to product delivery to sell-through at the customer site. Managers were empowered to make quicker business decisions and respond more effectively to market trends. At the same time, the business quickly increased customer satisfaction and strengthened loyalties with distributed reporting that reaches all the way to the customer site. 

Advanced Analytics

Demand Planning and Optimization

Data Management

Sales increased as each customer was able to enjoy a program better tailored to meet their unique needs. “Our sales team can generate reports for customers that detail regional sales with just a few clicks of the mouse,” said Ron Myshka, vice president of information services at E.A. Sween. The reports can be emailed, so if a customer wants to see monthly — even weekly — reports, it’s done within seconds. 

“It’s easier and faster to get the information from Logility than from the underlying ERP system,” Myshka said. “When we do business reviews with our key customers, our sales managers show the customer products sold, sales volume, profit — all the information that we used to have to dig out of JD Edwards. With Logility, pulling that information is quicker, and it’s easier for our customers to understand up or down performance immediately.” 

Results

“Our marketing department tracks product tests and introductions quickly and easily. We can see whether individual stores are achieving different results from others in a chain of stores. If a program isn’t selling at that chain or in a particular store, our rep can help the customer spot trends, understand their performance and make adjustments to improve performance.” 

Logility allows managers to be responsive to issues as they arise and take steps to correct them. “In addition, we’re saving on IT costs,” reported Myshka. “We don’t get requests for information, because everything’s there in Logility. We are absolutely thrilled with the results.” 

Logility was installed within one week. By the end of the second week it was completely validated. We are absolutely thrilled with the results.

Success story

Leupold & Stevens targets a new SIOP process.

Logility helped Leupold & Stevens support a collaborative Sales Inventory Operations Planning (SIOP) process to enable greater manufacturing flexibility and synchronize demand and supply.

25% Icon arrow up

Improved forecast accuracy

20% Icon arrow up

Increased throughput

96% Icon arrow up

Matched demand to supply

25% Icon arrow up

Improved forecast accuracy

20% Icon arrow up

Increased throughput

96% Icon arrow up

Matched demand to supply

Challenges

Fifth-generation, family-owned Leupold & Stevens has grown from a small survey instrument repair company into a premier American manufacturer of telescopic sights, red dot sights and spotting scopes for firearms and binoculars. Leupold & Stevens sells to retailers, distributors, governments and direct-to-consumer channels. 

Leupold & Stevens needed to replace an aging, unsupported legacy planning system with a digital supply chain platform and process to deliver enterprise-wide visibility and new business insights. 

Outdated planning processes

Planning needed to better respond to customer demands and mitigate risks around shifting regulatory requirements and tariffs.

Siloed departments

Sales, finance, operations, planning, purchasing and manufacturing didn’t have ready access to essential supply chain data for more informed decision-making.

Demand planning complexities

Over a thousand SKUs made up of multiple parts would result in BOMs of up to 15 levels. The supply chain network included a vast number of suppliers, many being the sole supplier of componentry.

Solutions

By providing Leupold & Stevens with a common source of data and insights across the business, Logility has given the business the visibility needed to tame the complexity across its supply chain and position the organization for continued growth. 

Demand

Inventory Planning and Optimization

Supply Planning and Optimization

S&OP/S&OE

With enhanced visibility into its data, Leupold & Stevens analyzed past promotions and determined they were not effective. The sales and promotional activities data made it clear to the company that it was incentivizing customers to buy at a discount. This raised a lot of questions and enabled the organization to make changes and to become more strategic. Today promotions are scheduled and reviewed monthly as part of the SIOP process and the results are closely tracked to ensure maximum profitability. 

Results

Leupold & Stevens’ monthly SIOP process provided the necessary foundation to generate a reliable statistical forecast. That, in turn, enabled the company to look forward and plan its capital expenditures, including several pieces of new equipment.  

It also encouraged all stakeholders to work together to create a consensus forecast to drive production planning. Everyone is now focused on one plan and the entire company’s progress toward reaching it, and promotions and new product introductions are now intrinsic to the process. Better visibility is driving new strategic insights. 

An “aha!” moment for the team was the realization that data quality and availability was vital to building a reliable process. About three months into the SIOP process development, the company noticed a glitch in its month-end reporting processes. Leupold & Stevens’ SIOP process has been a game changer for the company and enables a single plan for the business. 

After implementing Logility and establishing the new SIOP process, the company’s forecast accuracy improved by 25 percent — more in some lines — and it now achieves a 96% match of demand to supply, as close as it can get given production batch requirements. “When we first reported this, I don’t think anybody believed it. The executive team, of course they loved it!” explained Jay Schmidt, senior manager, supply chain, at Leupold & Stevens. 

With the insights we have gained from Logility, Leupold & Stevens can predictably react and adjust to our ever-changing customer demand to ensure we are delivering what our customers want accurately and on time.

Success story

Mid-Continent Instruments and Avionics understands profitability and improves margins.

Logility helped Mid-Continent enjoy a quick ROI with improved product and service margins, superior data quality and root cause analysis enabled through comprehensive, intuitive dashboards.

Challenges

Mid-Continent Instruments and Avionics designs, manufactures, repairs, overhauls and exchanges aircraft instruments, avionics and advanced power solutions. 

To maintain the high levels of service and quality products Mid-Continent’s customers have come to expect, the company needed access to real-time sales and operational analytics to better understand key drivers of profitability by product, service and customer. 

Better, faster decision-making

Mid-Continent needed to drive decision-making through real-time queries, compelling dashboard visualizations and best-in-class analytics.

Understanding profitability and improving margins

Mid-Continent had plenty of data but not the means to tease out actionable information. Excel pivot tables hid subtleties and insight.

Solutions

From a feature/function perspective, Logility was selected based on ease of use, visual appeal, intuitive design and drag-and-drop dashboard creation. Another important capability was data consolidation from Excel and Mid-Continent’s ERP system. 

The team believed that starting the Logility roll-out with Sales offered the quickest ’wins’ and a good opportunity to build the skills needed for self-sufficiency. After Sales, Inventory and Purchasing were implemented. There are now up to 15 ’power users’ across the company accessing Logility every day.
 

 

Advanced Analytics

Data Management

Inventory Planning and Optimization

Lack of data was never the problem at Mid-Continent; teasing out the underlying meaning of the data and turning it into actionable information was the challenge. Using Excel pivot tables, subtleties were easy to miss. By contrast, while tracking the performance of a sales promotion for a key customer, Logility analytics surfaced a slow-moving product. Within two minutes, sales management understood the root cause and took corrective action, calling the finding “eye-opening”. 

“With Logility, answering questions — and the inevitable follow-up questions — takes just a couple of clicks,” says Lindsay Koster, director of finance. “For example, it’s very easy to change the time horizon on a report. Using pivot tables in Excel usually took us hours.” 

With Logility, Mid-Continent can also view transactions that fail to meet minimum contracted pricing. “Thanks to Logility, our transactions are now analyzed in real time. This helps the company better understand profitability by product, service and customer,” says Steve Macari, Director of Information Technology. 

Mid-Continent employees can now monitor activity and look for trends and exceptions every minute of every day. Performance metrics and “what-if” analysis can answer questions such as, “How are current sales promotions working versus goal?”, “What has shipped / can be shipped today?”, “What’s been invoiced today?”, and “Where will the business end up this month compared to goal? 

Another big win for Mid-Continent has been the improvement in data quality. Logility has helped the company detect holes and mistakes in its master data, most noticeably in pricing. Correcting these errors helped streamline operations and created a positive feedback loop by increasing the trust that employees have in the data. 

 

Results

With Logility, Mid-Continent was able to increase sales margins with a clearer view of pricing strategies, accelerate in-depth root cause analysis and reduce the amount of its slow-moving stock. Data quality improved, and employees came to trust the data they were seeing and using every day. 

With Logility, we’ve been able to identify sources of growth and attack those items and give them the diligence that they need.

Success story

Mitre 10 gains much-needed supply chain visibility.

Logility helped Mitre 10 consolidate multiple data sources into a single repository using data warehousing. Users can now analyze information according to specific departmental or functional requirements and reduce the burden on IT for reporting.

Challenges

Mitre 10 is a New Zealand-based chain of more than 80 home improvement and garden stores. Structured as a marketing and buying co-operative, storeowners across the country can respond to the unique demands of their individual communities while being supported by their Auckland-based corporate headquarters. 

With greater than 80,000 individual SKUs available at any one time, monitoring individual performance across categories and regions, tracking trends or preparing useful, timely reports was a huge challenge for Mitre 10. 

Data but no insight

Monthly sales figures, purchasing numbers and selling information was all available but not able to be analyzed in any meaningful way.

Supply chain complexity

In excess of 80,000 individual SKUs being available across 80 stores made monitoring individual store performance difficult, as well as tracking trends or preparing useful, timely reports.

Solutions

From a technical perspective, Logility arranges information into pre-defined ‘cubes’ — sets of information relevant to a particular department that can then be dynamically arranged and analyzed easily. Logility’s data warehousing solution extracts the data from Mitre 10’s source systems and transforms it into the more usable data warehouse format to build into the information cubes. 

“Pulling information into a cube improves accessibility. With other systems, you get the same reports but they’re very static, so you don’t get the answers you’re looking for. There’s no easy way to drill down into the data,” says McHugh. “Once the cubes are all set up, it’s really simple on a design level to make changes, so that you’re always looking at the information in the most useful format for you.” 

Data Management

Advanced Analytics

Another win for Mitre 10 was Logility’s compatibility with other systems. Logility was able to simply ‘sit’ on top of their SQL Server, with most of the data coming from their ERP system on IBM iSeries. This saved cost and time because the business didn’t need to implement whole new systems. 

Results

Mitre 10 was able to get up to speed quickly with Logility’s uniquely simple user interface. As one executive reports, “When you compare Logility with other systems, it’s so much quicker to bring people up to speed. In 10 or 15 minutes you can learn the basics. When someone new starts here, they’re always surprised at how simple Logility is to use.” 

Mitre 10 managers now make decisions based on timely, accurate information rather than on instinct. They can quickly access a “state of the nation” view which is crucial for monthly management meetings where they discuss overall performance and strategies. 

The category managers use Logility when they need to compare actual sales to predictions, allowing them to make adjustments on pricing and promotions. 

Beyond the system itself, Mitre 10 executives have high praise for the Logility team, who just seem to “get” Mitre 10’s business, and always be “one step ahead.” As one executive explains, “The Logility team was a big selling point for moving forward. They’re a real asset to the business.” 

Under our old system, to build a complex report on sales and performance, it would have taken me at least an hour to pull the data, make the calculations and then format. With Logility, I can do the exact same thing in a few minutes.

Success story

Intertape Polymer Group gains essential visibility and refines planning processes.

Logility enables a more proactive supply chain that drives profitability by increasing visibility into customer demand, establishing clear process ownership, improving internal collaboration and connecting the sales plan to the production schedule.

25% Icon arrow up

Improved fill rates

30% Icon arrow up

Increased forecast accuracy

25% Icon arrow up

Improved fill rates

30% Icon arrow up

Increased forecast accuracy

Challenges

Intertape Polymer Group (IPG) is a recognized leader in the development and manufacture of specialized polyolefin plastic and paper packaging products and complimentary packaging systems. 

Due to rapid growth through acquisitions, Intertape Polymer Group was challenged with overlapping product portfolios, internal communication struggles, poor forecast accuracy, decreasing customer fill rates and a growing finished goods inventory. 

Rapid growth

Growth through acquisitions meant overlapping product portfolios, internal communication struggles, lower customer fill rates and growing inventory levels.

Poor forecast accuracy

IPG wanted to increase forecast accuracy and quickly position inventory to meet customer demand.

Supply chain complexities

IPG was struggling with competitive pressure from imports, the rising costs of raw materials, increasing fuel prices and more retailers becoming private-label brand managers.

Intertape Polymer Group Improves Fill Rates

Solutions

IPG implemented Logility for demand planning to establish a forecast strategy for make-to-stock products, align build-to-order product lead times, minimize order quantities and identify products and business units that were out of scope. With Logility, IPG quickly created a multi-echelon forecast that empowered flexible analysis and scenario-based planning by products, channels, geography and financial metrics. 

Logility helped IPG to greatly simplify the demand management process. IPG now creates item level simulations, reforecasts in the simulation model, generates a variance report between production and simulated plan and merges the demand forecast back into the live database. Logility also facilitates forecasting new product introductions (NPIs), new account onboarding and promotions. With a new demand planning process in place, IPG reduced the demand review cycle by 70% from 10 days to three days. With Logility, IPG has increased forecast accuracy (MAPE) by 30 points.

Demand Planning and Optimization

Inventory Planning and Optimization

Supply Planning and Optimization

Due to acquisitions, IPG’s product portfolio included a number of unprofitable items that contributed to revenue loss and excess inventory. IPG used Logility Demand Planning to rationalize the product portfolio and gain insight into product performance for specific channels and items that were profitable and unprofitable. The process also identified products that could be discontinued.  

“Before Logility, this type of product and channel analysis was clumsy and would take IPG a week or longer,” said Joe Tocci, senior vice president of supply chain for IPG. “With Logility, this analysis takes five to 10 minutes and is automatically calculated on a monthly basis.” 

For IPG’s consumer product line rationalization, the initial stocked item count went down dramatically from 2,209 to 400 by either discontinuing items or converting slower moving resources to make-to-order. The industrial product line rationalization reduced the product portfolio from 1,063 to 800. Through the process, IPG identified 24% of its former stocked offering that could be either discontinued or converted to make-to-order. 

Results

With Logility, IPG can leverage time-phased inventory policies that align business seasonality with corresponding customer service goals. IPG defines inventory at the A-B-C level based upon cost by location and forecast error. Inventory planning profiles are based on ABC code, source type (make, buy, transfer) and stock vs. non-stocked. This enables IPG to streamline the management of its dynamic product portfolio, reduce inventory investments, avoid stock-outs and minimize obsolete inventory. 

IPG also needed to focus on inventory planning for Regional Distribution Centers (RDC) and transition from a days-of-supply to service-level strategy. By more effectively managing inventory at the RDC, IPG knows how much inventory it needs to carry in each location. As a result, IPG achieved a $13 million year-over-year reduction in RDC inventory while increasing fill rates to 86% by the end of the first year. Today, IPG proudly maintains a 95% fill rate.  

“The results we have realized have been phenomenal,” said Tocci. “We have achieved a multi-million-dollar inventory reduction, and the savings we gained in the first four weeks following implementation of Logility Inventory Planning more than paid for the cost of software and implementation.” 

With the improvements gained in inventory planning, IPG opened a Consumer Distribution Center (CDC). “When we staged inventory for the CDC, our day-one in-stock inventory was 96%,” said Tocci. “Logility helped us quickly improve service without incurring an additional investment in inventory.” 

“It is a combination of process, software and product line rationalization that helped us achieve these tremendous results,” said Tocci. “Logility helped us quickly gain visibility and become flexible. It used to take two people anywhere from 10 to 15 days to create a 12-month forecast. Now it takes one person three days to rollout a forecast that provides a more accurate foundation for inventory and replenishment planning across our business.” 

We have achieved a multi-million-dollar inventory reduction, and the savings we gained in the first four weeks following implementation of Logility more than paid for the cost of software and implementation.

Success story

The Kraft Heinz Company creates a recipe for supply chain success.

Logility helped The Kraft Heinz Company optimize inventory, increase service levels, lower costs, improve agility, maximize opportunity, minimize risk and help it to achieve predictable results throughout the organization.

-10% Icon arrow down

Overall inventory reduction

2% Icon arrow up

Improved service levels

$15M – $20M

Achieved in savings

-10% Icon arrow down

Overall inventory reduction

2% Icon arrow up

Improved service levels

$15M – $20M

Achieved in savings

Challenges

The Kraft Heinz Company is the fifth largest food and beverage company in the world and has been a global leader for more than 100 years. A globally trusted company, Kraft Heinz provides high-quality, great-tasting, nutritional products for all eating occasions whether at home, in restaurants or on the go. 

The Kraft Heinz Company manages a large number of SKUs throughout a complex supply chain network, with several highly seasonal products with short shelf-life and high obsolescence, and frequent new product introductions and promotions. With this level of complexity, the company needed to improve working capital turnovers and cut costs while maintaining service levels. 

A large product portfolio

Kraft Heinz manages a complex, SKU-heavy network.

Fresh and Short Shel-Life Food

Kraft Heinz product lines include many short-shelf-life, high-obsolescence products.

Staying competitive

Staying competitive means new product introductions and frequent promotions.

Maintaining service levels

The complexities required improvements in working capital turnovers and cost reductions without compromising service levels.

Solutions

The Kraft Heinz Company implemented Logility Inventory Optimization and created a standard, centralized process for strategic planning and setting safety stock targets across its multi-echelon supply chain. As well as optimizing inventory, the company has increased service levels, lowered costs, improved agility, maximized opportunity, minimized risk and achieved predictable results throughout the organization. 

Inventory Planning and Optimization

Advanced Analytics

Results

With Logility, Kraft Heinz was able roll out the business across North America and Europe, achieve $15M – $20M in savings, and improve service levels by 2%. 

With Logility, we are improving service while simultaneously reducing inventory. It’s the best service we’ve had in five years with the lowest amount of inventory.

Success story

Service Foods prepares for global expansion with scalable analytics in place.

Logility helped Service Foods leverage best-in-class supply chain analytics to find new ways to consolidate and assess revenue data and market opportunities while supporting the company’s strategic business plan.

Challenges

Service Foods is one of New Zealand’s largest family-owned and operated food service distributors, importing products from more than 20 countries as well as sourcing 8,000+ local products. Service Foods caters to restaurants, bakeries, cafes, catering businesses and supermarkets. 

Rapid business growth through diversification and acquisition had created a vast wealth of data for Service Foods. However, the company lacked an effective way to analyze the data to support further business expansion and revenue growth. 

Diverse products and acquisitions

Service Food had amassed a vast amount of Excel data and proprietary report formats which were impossible to manage and analyze with existing software.

An over-customized ERP

The company’s heavily customized ERP provided no useful insight to support a strategy for growth.

Increasing staff numbers

To manage a sharp increase in staffing, management could see that a modern, scalable analytics platform that could deliver useful information as well as support the strategic business plan was an imperative.

Solutions

According to Aneil Balar, Service Foods’ Managing Director, the company had a vision for best-in-class supply chain analytics beginning with Sales, followed by Inventory Management, then Financials, and finally Vendor Management. “We knew Logility could meet our functional needs,” said Balar. “We also talked to a lot of companies that were operated from overseas, so we really liked the fact that Logility has a local presence. This meant Logility could better understand how our business worked and could provide local support.”  

Balar explained that Logility’s Auckland team also understands New Zealand’s GST environment, which makes things easier. 

Advanced Analytics

Inventory Planning and Optimization

Data Management

In short, Logility arrived at the right time and provided a compelling proof of concept. The Sales team was eager for new ways to analyze revenue data and market opportunities, so the implementation began there with three key staff members and was rolled out using a ‘train the trainer’ model. Since then, licenses have been rolled out to 100 users. 

Results

The challenge of conquering the shortcomings of existing systems and making sense of massive amounts of data was quickly resolved with dashboards that provide a global overview of company performance. Comprehensive data related to 12,000 SKUs is now in one place and refreshed eight times daily for near real-time analysis. 

What was once suspected or even known, but unmanageable — because it was unmeasurable — is now revealed in detail and can be addressed strategically. A prime example is the cost to Service Foods of selling and onboarding a new account knowing that many will never place an order. This is no longer anecdotal; the company now knows that 20 new accounts are opened in an average week and eight of them will never place an order. Another example is the ability to react to rising inventory balances for slow-moving products. No one doubted this was happening; using Logility, it can now be identified and dealt with quickly and decisively.  

With Logility, Service Foods staff now talk about the same information and insight using a common vocabulary. Logility makes it easy for non-technical users to access and interpret the same information as the power users. The solution can be accessed from any device that can run a browser, and employee and customer access is carefully controlled using role-based permissions and standard industry security protocols. 

With Logility, Service Foods has adopted a scalable analytics platform to support business growth. It has refined key sales metrics, consolidated data from 12,000 SKUs into a single view, automated report distribution to key stakeholders and gained critical insight to enable faster, better decision-making. 

Our vision is to expand our product and service range to become one of the most extensive organizations in the business. To do that, we need to establish business analytics as a sustainable competitive advantage.

Success story

Fender rolls out a rockin’ supply chain.

Fender implemented Logility and achieved true visibility of supply and demand requirements, improved forecast accuracy, boosted service levels by 50% and doubled finished goods inventory turns.

Challenges

Fender is the world’s number one maker of stringed instruments and solid-body guitars. 

Fender needed to improve forecast accuracy, gain better control of inventory, minimize capacity constraints, and synchronize supply flow. 

Supply chain as a competitive advantage

Supply chain management had been viewed by the company for many years as an administrative function.

Disparate data

The company struggled with disparate and limited demand data. Several brands and products were not forecasted at all, and short planning horizons made it difficult to achieve strategic targets.

Out-of-stocks

Lost sales were primarily due to out-of-stock conditions.

Labor-intensive operations

A handmade Fender guitar takes 28 days on average to complete, and for a custom product there are up to 15,000 options.

Solutions

Fender set out to build a more responsive supply chain, with a goal of end-to-end visibility and a comprehensive plan to drive and measure its global performance. Specific goals included: improve forecast accuracy, gain control of inventory, identify and minimize capacity constraints, and balance supply and demand profitably. The first step was to build a foundation with a fundamental demand plan, on top of which to synchronize all other processes. 

Demand Planning and Optimization

Inventory Planning and Optimization

Data Management

Life Cycle Planning

Fender turned to Logility to meet its total supply chain requirements: real-time forecast results, direct visibility of impact to sales from supply constraints, easy integration with SAP, and ultimately a user-friendly solution that would be up and running quickly. 

Logility has made Fender’s complex supply chain simple to understand and easier to balance in order to ultimately meet our customers’ needs. Everyone ‘gets it’. With the flexibility and control afforded by Logility, we are all on the same page as to where our business is going and where our opportunities are,” notes the senior vice president of supply chain at Fender. 

Results

Quick implementation and business user training were fundamental to Fender’s success. An efficient on-boarding process was established in the first six months. “We listened and learned from the experts. The Logility team gave us situational recommendations based on experience. They made a significant effort to learn our business needs and focus on what was important to Fender, and how to apply Logility to solve our challenges,” says the senior vice president. Fender saw an almost immediate return on investment; ROI was achieved in the first six months, much faster than was planned. “From a resource perspective, Logility is also very cost-efficient to support. Any increase in resources is to support company growth, not administration of the supply chain. With Logility, we have been able to expand our business not only via organic growth but also through acquisitions, and easily meet the needs of new divisions, products and markets,” the senior vice president explains. 

Through market fluctuations, Fender’s supply chain remains responsive and flexible. The company is able to anticipate changes and react strategically. The results are impressive: Fender increased service by 50% and doubled finished goods inventory turns. The company also has boosted forecast accuracy for key products and reduced inventory while improving revenue. With Logility, Fender has the ability to see what changes from one week to the next in the context of its strategic plans. With this visibility, Fender has gone from its previous 12 decision points to more than 52 decision points a year. 

Logility has made Fender’s complex supply chain simple to understand and easier to balance in order to ultimately meet our customers’ needs.