Many companies struggle to avoid overstocks while responding to variations in demand. Seasonal businesses have an especially difficult time managing demand fluctuations without overspending on inventory or causing shortages that prompt customers to look for other options.
Long lead times compound these issues, especially given how difficult it is to make accurate forecasts many months in advance.
Last year, supply chain leaders at Ukrainian tea company Monomax decided it was time for a change. With raw materials whose lead times were more than three months — and a patchwork system of Excel spreadsheets, ERP calculations, and no centralized data management capabilities — they had long struggled with inventory planning. They began searching for a new methodology that could help them manage supply chain seasonality.
DDMRP stood out because it doesn’t require detailed forecasts to deliver great results. Instead, according to Monomax Supply Chain Manager Vladimir Ropalo, it offers a management model that can easily absorb both spikes and drops in demand. Benefits came soon after the company implemented Replenishment+, the industry’s leading DDMRP solution.
“We used to have meetings every week to plan next week using Excel sheets,” Vladimir explained. Now, the production manager makes fast decisions based on Replenishment+ data. Orders for suppliers and production have been automated, and the company was able to maintain the same level of inventory in a period when sales increased by 60%.
To learn more about how Replenishment+ helped Monomax manage supply chain seasonality, check out the case study.