Outdated planning processes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