The Carlstar Group manufactures specialty tires and wheels for agriculture, construction, high-speed trailer and power sports markets.
The Carlstar Group relied on a fluid mix of ERP system-generated data, error-prone spreadsheets and rumor to operate the business.
Lack of timely, actionable insight
Outdated information created operational problems related to inventory planning and back-order tracking.
With Logility in place, Carlstar achieved a new level of sales performance. As soon as the data was visible, shared and trusted, an important cultural change took place. Healthy competition emerged as sales executives gained confidence and became self-sufficient through the use of graphical dashboards.
Furthermore, a deeper understanding of buying habits led to more collaboration between the sales executives and the customers. Suddenly customers were held accountable for plans they agreed to. In Operations, improved business visibility allowed leadership to spot trends earlier and make more considered decisions. It was able to stand up a fully functioning platform in just six weeks, consolidating data across three disparate systems.
Carlstar executives say that Logility now permeates their daily operations and planning functions. As a result, the company has reduced inventory, lowered customer “cost-to-serve”, improved visibility of past-due orders and improved adherence to customer-level forecasts. The gains are impressive, but the company espouses the long view. As one executive put it, “It’s likely that much of the low-hanging fruit has been picked; while that’s a cause for celebration, it is not a reason to slow down. We will continue to expand our Logility footprint with new views and new features, tackling each operational constraint we encounter. Our goal is to continue to refine our reporting discipline. We want our employees to move from reactive responses to proactive decisions based on accurate information.”
With Logility, The Carlstar Group has saved $10 million in obsolete inventory with better visibility, enabled better, faster data-driven decision-making and enhanced customer service through improved fulfillment performance as well as reducing past-due orders by $11.5 million.
It has boosted profits through a reduction in cost-to-serve based on a granular view of individual customer interactions over time.
Additional benefits include the power of mobile views to deliver actionable data in the field and the ability to deliver real-time alerts based on deviations from the supply and demand plans.