Supply Chain Management

Supply Chain Management

There are many different Supply Chain Management (SCM) software packages and tools, each with varying approaches on how to help a company optimize their process. Each of them would produce a futile result, however, if the right processes are not established, if problems are not properly defined, constraints are not accurately identified, or data is not collected and interrelated entirely.

Our SCM team continues to work in several manufacturing areas, including Consumer Goods, Chemical, Petrochemical, Pharmaceutical, Printing, Flooring, and Food & Beverages.  We have a proven success record in implementing SCM solutions for six Fortune 500 companies, as well as a number of mid-level companies.

We have deep knowledge and a proven implementation record in leading SCM software. Our primary SCM partners include AspenTech, OM Partners, Siemens, and Microsoft.

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Logexsoft does not offer its own SCM product; therefore we are product independent and unbiased.   And if you are at the point of selecting the right software for your company we can evaluate your SCM processes and needs, and then submit to you our unprejudiced recommendations.

 

What Logexsoft Can Provide:

Forecasting & Demand Management

Demand Management is required to provides the single most important driver for planning and scheduling.   Advanced statistical techniques, collaborative demand management involving customers, sales staff, marketing and manufacturing organizations, and intuitive visualization and analysis tools are crucial components to develop an accurate forecast of market demand.

Successful Demand Management application has improved customer service levels from the 80% range to the 97%+ range, while allowing a 5-10% reduction in inventory and a 10-20% improvement in asset utilization by virtue of providing a stable forecast against which production plans and schedules can be developed.

 

Strategic Planning

A strategic planning model has been developed and implemented for a leading US consumer goods company. This model was used to simulate new business rules and processes, calculate impacts of possible business scenarios and develop improved and more efficient logistics processes.  It was used to dynamically allocate production to each factory, adjust future demand to simulate possible business scenarios, provide the capability to change the distribution network, disaggregate demand to individual product codes and assess impacts of direct materials supply.

 

Operational Planning & Scheduling

Logexsoft was the key implementation partner in rolling out enterprise wide planning and scheduling applications for a major CPG company and then providing ongoing support.  The Planning and scheduling applications were focused on short term tactical planning and production scheduling.  These applications provided optimal production, distribution and inventory plans considering demand, capacity, inventory and transportation constraints.  Additional constraints such as tank configurations, batch sizes, complex make-pack alignment and shared resource constraints.

Below are some benefits achieved from these applications:

  • Net 6% increase bulk capacity utilization
  • 2% reduction in overtime
  • 84% reduction in packaging line stoppages
  • 3% reduction in bulk production stoppages
  • 9% savings in utilities
  • 21% reduction in downtime
  • Improved visibility and predictability of intermediate inventories
  • 20% increase in time devoted to higher level proactive planning
  • 25% improvement packaging schedule adherence

 

Distribution Planning

Annual distribution costs for global consumer goods company in North America were nearly $100 million. The firm explored trade-offs between customer service and operating costs in a redesign effort. The project team adapted formulations to the extensive available data and used a series of formulations to cope with the scale of the project. A flexible modeling tool has been developed in implementing these formulations.

The resulting revised distribution system reduced costs and improved customer service, and the modified distribution network took next-day deliveries from 77 percent to 90 percent. In studies following the initial distribution changes the estimated annual costs savings was 6% percent; in addition a one-time 9% improvement in cash flow from inventory reductions was also identified. Company also applied the models to operations in Scandinavia, Europe, and the Asia-Pacific area.