Corporations implementing provide chain planning (SCP) have historically been very huge corporations or corporations with advanced provide chains. Neither of the shoppers highlighted on this article fall into that class. Provide chain planning is not only for the large boys.
Myers Industries Implements John Galt Options
Myers Industries (NYSE: MYE) is headquartered in Akron, Ohio in america. This producer produces plastic reusable materials dealing with containers and plastic gas tanks. Additionally they are additionally one of many largest distributor within the US of instruments, tools and provides for the tire and wheel service trade. They generated revenues of over $750 million of their final fiscal 12 months.
The Firm operates eighteen manufacturing amenities, 9 distribution facilities positioned all through North and Central America. They supply plastic pellets after which use injection, blow molding, rotational molding, and thermoforming to provide their completed merchandise.
In September of 2020, the corporate employed Jeff Baker to be their Vice President of Procurement and Built-in Provide Chain. Mr. Baker spent over 34 years main procurement groups at The Dow Chemical Firm. At Dow, Mr. Baker had Buying expertise in uncooked supplies, and logistics for his or her plastics provide chain. After being employed at Myers Industries, Mr. Baker was promoted to Vice President of Shared Companies and tasked with making a centralized provide chain group.
Getting unbiased enterprise models to function in a centralized provide chain construction would enable the corporate to have higher leverage in procurement negotiations. However, much more importantly, it will enable Myers to construct up their provide chain experience, change into extra environment friendly, and drive asset utilization. “There was restricted demand planning that tied again to our precise manufacturing capabilities,” Mr. Baker defined. That meant Myers had restricted capabilities when it got here to gross sales & operational planning (S&OP). S&OP is the important thing course of in successfully balancing provide – what could be made – with demand – what clients need to purchase.
Myers Industries ended up deciding on the Atlas Planning Platform from John Galt Options. Mr. Baker believed {that a} provide chain planning resolution might assist drive a “constant course of throughout the group” and function the impetus to construct expert demand and provide planning groups. The availability chain planning resolution has “a piece course of circulate to it,” Mr. Baker mentioned. The KPIs and widgets are extremely configurable, and the dashboards are “highly effective.”
Myers Industries started implementing the answer in February. They’ve three enterprise models stay – a fourth will probably be up by the top of the 12 months. They’ve carried out the demand resolution, provide planning, and are engaged on tough lower capability – a extra superior type of provide planning. The most important obstacle within the implementation was that a lot of the grasp information was soiled and the method of cleansing it took time.
One enterprise unit has already made important progress. Primarily based on the info from the SCP, Myers might see that there was quite a lot of demand that obtained loaded on certainly one of their manufacturing property. Visibility to this truth allowed Myers to maneuver from a make-to-order to a make-to-stock course of. “We have been in a position to make use of various sources of producing to extend the quantity of product that we might promote,” Mr. Baker defined. That transition allowed for a better efficiency in on-time deliveries and elevated gross sales. “We’re offering significantly better customer support, we’re promoting extra, and we’re extra worthwhile.”
John Galt was chosen as a result of it offered sturdy capabilities. “You understand it’s actually good. Truly, it’s actually exceptionally good,” Mr. Baker exclaimed. He then pulled the answer up and demonstrated it for me. It actually does look good, actually exceptionally good.
Palo Alto Networks Implements Anaplan
Palo Alto Networks (NASDAQ: PANW) is a public cybersecurity firm with headquarters in Santa Clara, California. Its core merchandise are a platform that features superior firewalls and cloud-based choices that stretch these firewalls to cowl different elements of IT safety. The fast-growing firm generated over $5.5 billion in revenues within the final fiscal 12 months.
Jonathan Morgan – the Senior Director of S&OP, Demand, and Stock Planning – defined that for a multibillion-dollar firm, Palo Alto has a easy provide chain. “Our predominant contract manufacturing is finished in Milpitas, CA – close to our headquarters – by Flex.” That facility makes printed circuit boards and does remaining meeting. One other contract producer produces a lot smaller volumes for a distinct enterprise unit in Fremont, CA. “The 2 contract producers additionally retailer the completed items after which do the transport.”
Earlier than deciding on and implementing Anaplan, Palo Alto used an answer from a distinct provide chain planning vendor. “We have been arising on time to resume that license.” Mr. Morgan mentioned. “So, Palo Alto did a software program analysis. “We checked out our present enterprise setting, seemed on the wants, the utilization of the software program, and the pricing.”
“We realized that the software program we’re paying for could be very costly and sturdy. It’s advanced software program made for a extra advanced provide chain,” Mr. Morgan mentioned. “And the highway map we had in entrance of us didn’t require that kind of complexity.” After taking a look at a number of distributors, Palo Alto “discovered that Anaplan was the perfect match for us.”
Anaplan was chosen in 2018 and carried out provide and demand planning concurrently in solely 16 weeks in that 12 months. That, I commented, was a really quick implementation. “Yeah. It did assist that the corporate’s gross sales operations staff had been utilizing Anaplan beforehand for a number of years. There was some expertise internally with Anaplan.” And since they have been already utilizing a SCP resolution, that they had already had clear grasp information.
The scope of the Anaplan SCP resolution that’s in use has elevated over the previous few years. “We’re presently working S&OP, demand planning, provide planning and likewise do some stock administration actions” with Anaplan. Mr. Morgan continued, “We do provide and demand optimization, and allocation at a completed good degree. We do some capability planning for manufacturing, manufacturing engineering, take a look at engineering, and truck capability.”
As a result of Anaplan was changing an current SCP, they aren’t presently driving any web new price financial savings. Sometimes, provide chain planning drives important reductions in stock. Nevertheless, on this case Anaplan has allowed for a shift in how stock is deliberate. They’ll now plan buffers for a full Invoice of Supplies throughout the planning horizon. This changed an Excel primarily based, part-by-part strategy. This resulted in important time financial savings for the availability chain staff and the contract producer. It additionally offered extra flexibility to manufacturing to regulate to adjustments in demand for widespread supplies.
So, what’s subsequent? “We’re about to go stay with an order promising course of. We don’t have the power to very precisely mission once we can ship an order.” Presently they undergo an order on a line-by-line foundation, have a look at the availability views projected by Anaplan, and “say yeah, it seems to be like we might cowl it by (a sure) date.” However they’ll’t get a agency ship dedication till an order is launched from the availability plan into the success web site. “Then they have a look at it (the order), test their stock and supply that ship commit date again” to their Palo Alto Networks SAP enterprise useful resource planning resolution.
“I’m attempting to get forward of that. I’m implementing an order promising course of utilizing the Anaplan optimizer. We’ll have a look at all the availability and demand, optimize in opposition to that for numerous issues like income or margin, and buyer priorities, after which feed that into an order promising engine.” Palo Alto will then be capable of decide to transport an order on a selected week. Mr. Mogan continued, “that will probably be an enormous profit to our Gross sales, Finance and Order Processing groups. Finance will get a view into transport linearity for income planning. ”Faster, extra correct order commitments will enable them to inform a salesman, “Should you carry this order in, we are able to ship it by (this) date”, permitting the Gross sales and Orders groups to higher serve our clients.
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