Lack of visibility
Sourcing through multi-level networks meant a lack of integrated insight into global operations.
Growth through acquisition
Disparate data sources meant local planning with no visibility across the global network.
Large portfolio of SKUs
CooperVision has thousands of SKU-level items within a product family, creating forecasting challenges.
Ineffective forecasting methods
Excel could not support a product portfolio of their size.
Among the challenges, CooperVision saw an opportunity to increase visibility and demand analysis, with end goals of increasing forecast accuracy, improving inventory accuracy and costs, and effectively maintaining high customer service levels. With these goals in mind, CooperVision chose Logility to instill best practices across its global network and create a company-wide common supply chain platform.
Logility’s ability to handle CooperVision’s immense SKU portfolio and implement quickly were key factors in the decision. The global supply chain manager says, “Logility provides us with an integrated view of global operations—our first common platform across the company. Although multiple ERP systems are still in place at CooperVision, we have made significant strides in gaining supply chain visibility around the world.”
With a new ability to drill down into the detail behind the demand plans, CooperVision quickly saw improvements in SKU-level forecast accuracy. A detailed forecast analysis at the item level and aggregate view provides CooperVision with both a reliable process and a significantly more accurate forecast. With an accurate item level forecast, CooperVision can determine manufacturing frequency, impact on inventory turns and, in turn, reduce inventory obsolescence. This visibility has helped CooperVision make better decisions about production assignments and inventory policies. Moving production from a high volume to low volume production line, one product family decreased from 20 months on hand inventory to five months.
With Logility, CooperVision sets time-phased inventory policies and uses statistical safety stocks linked to the comprehensive demand plan. “Understanding the underlying drivers of our inventory levels and being able to then take action has been a huge benefit. We have gained the visibility to make both strategic and tactical inventory decisions and have improved overall inventory position throughout the business,” states the global supply chain manager. To further lower inventory investments, Logility supports CooperVision’s manufacturing postponement strategy of holding “silver stock,” an unpackaged intermediate stage of inventory, and “white box inventory,” the finished goods without labels, until the company is ready to respond to market opportunities.
A common supply chain platform also provides CooperVision with the foundation for an effective S&OP process. Previously, CooperVision lacked a cohesive plan that supported a link between marketing, finance, supply chain, and manufacturing and did not have the right data available to conduct an efficient corporate S&OP process. Now with access to global inventory, supply and demand plans, the company’s progress with the corporate S&OP initiative is well underway.
“With Logility, we are better positioned to manage variability in the process, and have greater confidence in our numbers and ability to balance supply and demand to meet corporate goals,” concludes the global supply chain manager.