Established in September 1945, AmorePacific Corp has provided global customers with a total package of beauty and health solutions through 30 brands spanning beauty, household, and healthcare products. AmorePacific operates their own cutting-edge R&D centers and product distribution facilities.
Over the last 20 years, the company implemented several MRP / ERPbased solutions designed to improve weekly cycle product planning and synchronize demand planning. Even with the addition of new technology and the daily MRP running, AmorePacific was experiencing several supply chain management issues, including:
- Sales Forecast Accuracy – The long term accuracy of the MRP/ERP forecast was not reliable (< 10% accurate). The purchasing team
could not depend on the sales forecast and only used it for reference purposes.
- Workarounds – The purchasing team attempted to reduce lead time because short term forecast accuracy was more reliable.