designed at reducing inventory and increasing product availability. ... Avon House, 435 Stratford Road, Shirley, ... pro
Case Study
Investing in Optimiza Gave ThyssenKrupp Full Visibility on Supply Chain Trends Company Profile “Optimiza enables ThyssenKrupp to meet rising customer expectations by enabling them to forecast demand on a mid and short-term level. It also gives us visibility on supply chain trends that allows future planning with optimal stock levels. Crucially, because it is linked to our internal systems, it combines internal data with customer forecasts and supplier information, which helps to highlight material shortages and other short-term challenges and enables us to take action.” Harald Meyer, Chief Financial Officer, ThyssenKrupp Aerospace
ThyssenKrupp Aerospace is a subsidiary of the €40 billion internationally operating ThyssenKrupp Group. They focus on supplying aerospace materials and finished parts logistics to the world’s leading aerospace companies and their supply chains. Operating from numerous service centers throughout the Americas, Europe, Africa and Asia Pacific enabling them to aggregate demand across a single supply chain on behalf of the world’s leading OEMs.
Challenge ThyssenKrupp customers are becoming more globalised and expect ambitious service standards, high levels of visibility and the right prices from their materials partners. This means paying close attention to materials availability and ensuring on-time delivery using a minimal amount of inventory in order to optimise working capital.
Solution Optimiza was implemented at ThyssenKrupp as part of it’s customer-led strategy designed at reducing inventory and increasing product availability. A further part of this plan was to build a highly effective sales and operations plan which was centered round information generated from the newly installed Optimiza.
© 2016 Optimiza Limited. All rights reserved. v.06/01/16
Companies use Optimiza to maximise service levels, increase customer loyalty and protect margins. They do this not only by aligning demand and supply processes but also through building, managing and executing a dynamic, agile and responsive demand and replenishment plan. Optimiza customers align crossfunctional teams internally and externally using the continuous improvement framework, and formalise their processes into a structured auditable system.
Results Optimiza has successfully been used by ThyssenKrupp Aerospace in several countries for many years to manage contracts with key customers including Boeing, Airbus and Bombardier. Since using the software forecasting errors have halved and the availability of products has increased by over 10 percent. Inventories have decreased by 25 percent. Optimiza will be rolled out to all of ThyssenKrupp Aerospace’s locations worldwide and improved functionalities will jointly be developed. The move is part of a customer-led strategy which has already lead to a significant decrease in inventory levels and an increase in product availability.
Demand Planning: Organisations know that forecast accuracy is able to yield a greater equivalent returns on company’s financials than any other planning activity. Inventory Optimisation: Unlike traditional inventory re-ordering systems, Optimiza Inventory Planner builds a business specific inventory model that takes into account the unique supply, demand and flow characteristics of each product. Supply Planning: Busy inventory Planners have little time to validate supplier information, or monitor and prioritise existing orders. The direct results is that orders are placed based on what may be an over or under estimated lead time and potential issues are only identified at the back door.
Optimiza Ltd Avon House, 435 Stratford Road, Shirley, Solihull, B90 4AA, United Kingdom Phone: +44 (0) 121.746.5350 LLamasoft.com |
[email protected] © 2016 Optimiza Limited. All rights reserved. v.06/01/16
